Rivian Automotive, Inc. (RIVN) Securities Fraud Class Action

Rivian investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described below, you may no later than May 6, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.

Kessler Topaz Meltzer & Check, LLP has filed a class action lawsuit on behalf of those who purchased or acquired Rivian Automotive, Inc. (“Rivian”) (NASDAQ: RIVN) common stock between November 10, 2021 and March 10, 2022, inclusive (the “Class Period”).

Case Background:
Rivian, a Delaware corporation with principal executive offices in Irvine, California, designs, develops, and manufactures electric vehicles (“EVs”), including an electric SUV (the “R1S”) and an electric pickup truck (the “R1T”).

Rivian completed its $13.7 billion IPO in November 2021.  IPO related documents filed with the U.S. Securities and Exchange Commission represented—among other things—that Rivian had 55,400 combined preorders for the R1T and R1S, and that Rivian planned to “produce approximately 1,200 R1Ts and 25 R1Ss and deliver approximately 1,000 R1Ts and 15 R1Ss” by the end of 2021.  

Investors began to learn the truth about Rivian on December 16, 2021, when the Company disclosed that it would fall “a few hundred vehicles short of [its] 2021 production target of 1,200 [vehicles].” In addition to admitting that production was lagging behind, Robert J. Scaringe—Rivian’s Founder, Chief Executive Officer, and Chairman—acknowledged that Rivian’s vehicles were “very aggressively priced” and that, against “the backdrop of inflation,” Rivian was “look[ing] at our pricing.”  Following this news, Rivian’s stock price fell $11.17 per share, or more than 10%, from a close of $108.87 per share on December 16, 2021, to close at $97.70 per share on December 17, 2021.

Then, on March 1, 2022, Rivian announced that it would dramatically increase the starting price of the R1T by about 17% (to approximately $79,000 from $67,500), and the R1S by about 20% (to approximately $84,500 from $70,000). Notably, these price changes would apply not only to future orders, but also to existing preorders (many of which had been placed as long as three or more years ago). According to Jiten Behl—Rivian’s Chief Growth Officer—the price increases were the result of “inflationary pressure, increasing component costs, and unprecedented supply chain shortages and delays for parts (including semiconductor chips).”  Following this news, Rivian’s stock price fell $8.35 per share, or more than 13%, from a close of $61.91 per share on March 1, 2022, to close at $53.56 per share on March 2, 2022.

Just two days later, on March 3, 2022, the defendants retracted aspects of the price increases, now announcing that preorders that had been placed before March 1, 2022, would not be subject to the new prices, and that customers who had cancelled their preorders could reinstate their orders at the original prices. Mr. Scaringe admitted that applying the price increases to existing preorders was “wrong” and “broke [customers’] trust in Rivian.”  Following this news, Rivian’s stock price fell an additional $2.65 per share, or approximately 5%, from a close of $53.56 per share on March 2, 2022, to close at $50.91 per share on March 3, 2022.

Finally, on March 10, 2022, Rivian announced disappointing financial results for the fourth quarter of fiscal year 2021, including revenue and adjusted losses per share that fell far below analysts’ estimates. Additionally, while analysts had expected Rivian to produce 40,000 vehicles in 2022, the defendants disclosed that Rivian expected to produce only 25,000 vehicles in 2022.  Following this news, Rivian’s stock price fell $3.11 per share, or approximately 7.5%, from a close of $41.16 per share on March 10, 2022, to close at $38.05 per share on March 11, 2022.

The complaint alleges that, in the Registration Statement and throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Rivian would not meet its 2021 production and delivery targets; (2) Rivian’s vehicles were underpriced and Rivian would need to substantially increase prices; and (3) as a result, the defendants’ representations about Rivian’s business, operations, and prospects lacked a reasonable basis.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP:  James Maro, Esq. (484) 270-1453 or via e-mail at info@ktmc.com.  If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.