On October 23, 2025, Kessler Topaz filed a motion seeking preliminary approval of a $250 million settlement in a federal securities class action against Rivian Automotive, Inc., certain of its officers and directors, and the investment banks that underwrote Rivian’s historic November 2021 initial public offering (“IPO”). Led by Swedish pension fund Sjunde AP-Fonden (“AP7”), the Plaintiffs in the action alleged that, at the time of the IPO, the cost of the materials used to manufacture Rivian’s flagship R1 electric vehicles substantially exceeded their retail prices, thus ensuring that the Company would lose money on every R1 vehicle sold. Plaintiffs also alleged that, in order to address this issue, the Company had planned to implement a significant price increase after the IPO. Plaintiffs claimed that these material facts and risks were not disclosed in Rivian’s IPO offering documents. On March 1, 2022, the Company announced that it was increasing R1 prices by up to 20%, including on the 50,000+ existing pre-orders. A backlash ensued and Rivian’s stock price collapsed. Plaintiffs alleged that this event revealed the upside-down cost structure of Rivian’s signature vehicle that had not previously been disclosed to investors.
On July 3, 2023, the Court denied Defendants’ motions to dismiss the Plaintiffs’ Amended Consolidated Complaint for Violations of the Federal Securities Laws. Class certification was subsequently granted, fact and expert discovery were completed, which included nearly 50 depositions, as was briefing on Defendants’ motion for summary judgment. On the eve of the summary judgment hearing, the parties agreed to settle the matter for $250 million in cash. The settlement is subject to preliminary and final approval by the Court. AP7’s leadership and Kessler Topaz’s litigation prowess led to this excellent result for Rivian investors.