On May 20, 2026, United States District Judge Josephine L. Staton granted Lead Plaintiff Sjunde AP-Fonden’s (AP7) motion for final approval of a $250 million settlement arising out of Rivian Automotive Inc.’s highly-anticipated 2021 initial public offering. Lead Plaintiff, together with additional plaintiff James Stephen Muhl, alleged that Rivian’s IPO offering documents—and its post-IPO statements to investors—contained material misrepresentations and omissions regarding the true costs of manufacturing the company’s flagship R1 line of electric vehicles, and failed to disclose a planned R1 price increase that was necessary to ensure long-term profitability. Plaintiffs alleged that the truth was revealed to investors in March 2022, less than six months after the IPO, when Rivian’s stock price declined following its disclosure of substantial R1 price increases.
After their claims were initially dismissed, Plaintiffs amended their complaint, defeated Defendants’ motions to dismiss, successfully moved for class certification, completed fact and expert discovery, and briefed summary judgment and Daubert motions. On the eve of the parties’ summary judgment oral argument, a settlement was reached for $250 million in cash.
The Kessler Topaz team representing Plaintiffs and the investor class includes Sharan Nirmul, Jennifer L. Joost, Rick Russo, David Bocian, and Bennett Cho-Smith.