SAN DIEGO--(BUSINESS WIRE)--The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers of Rivian Automotive, Inc. (NASDAQ: RIVN) common stock pursuant or traceable to Rivian’s initial public offering on or about November 10, 2021 (“IPO”) have until May 6, 2022 to seek appointment as lead plaintiff in Crews v. Rivian Automotive, Inc., No. 22-cv-01524. Commenced on March 7, 2022 in the Central District of California, the Rivian class action lawsuit charges Rivian, certain of its top executive officers and directors, as well as the underwriters of the IPO with violations of the Securities Act of 1933.
If you suffered substantial losses and wish to serve as lead plaintiff of the Rivian class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Rivian class action lawsuit must be filed with the court no later than May 6, 2022.
CASE ALLEGATIONS: Rivian is an electric vehicle (“EV”) company that purports to design, develop, and manufacture category-defining EVs and accessories and sell them directly to customers in the consumer and commercial markets. In 2018, Rivian unveiled its first consumer EVs: the R1T electric pickup truck and the R1S electric SUV. On November 10, 2021, Rivian offered 153 million shares to the public through an IPO at a price of $78.00 per share for total proceeds of $11.93 billion. According to the IPO’s registration statement, the “R1T and R1S introduce our brand to the world and will serve as our flagship vehicles as we continue to expand our offerings.” Based on Rivian’s production forecast, Rivian expected to fill its 55,400 R1T and R1S backlog by the end of 2023. Thus, while the number of preorders underscored Rivian’s potential for success – that potential depended on customers ultimately completing their purchases once Rivian’s EVs became available.
But as the Rivian class action lawsuit alleges, unbeknownst to investors, the IPO’s registration statement’s representations were materially inaccurate, misleading, and/or incomplete because they failed to disclose, among other things, that the R1T and R1S were underpriced to such a degree that Rivian would have to raise prices shortly after the IPO and that these price increases would tarnish Rivian’s reputation as a trustworthy and transparent company and would put a significant number of the existing backlog of 55,400 preorders along with future preorders in jeopardy of cancellation.
On March 1, 2022, Rivian announced that it was raising the prices of its R1T pickup and R1S SUV by 17 percent and 20 percent, respectively, and that the new prices would apply to nearly all preorders. At the time of the announcement, Rivian had only produced and sold roughly 1,000 vehicles. A March 2, 2022 article in the online publication ARS Technica, titled “Rivian surprises, outrages EV truck buyers with 20% price hike,” questioned the reasons behind the price increases. An article published in Electrek on March 2, 2022, titled “Rivian buyers are cancelling at alarming rates after price increases,” noted that: “A poll on the Rivian subreddit, one of the biggest communities of Rivian fans, gives us a better idea of the pulse of the reservation holders, and it shows a high cancelation rate” and provided a screenshot of the poll, which showed a majority of voters planned to cancel their reservations.
By the commencement of the Rivian class action lawsuit, the price of Rivian’s shares closed at $42.43 per share, significantly below their $78.00 IPO price.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any purchaser of Rivian common stock pursuant or traceable to the IPO to seek appointment as lead plaintiff in the Rivian class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit http://www.rgrdlaw.com for more information.
Attorney advertising.
Past results do not guarantee future outcomes.
Services may be performed by attorneys in any of our offices.
