Rivian must face lawsuit claiming it defrauded IPO investors over vehicle prices


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In her July 3 decision, Staton called the alleged higher costs a “major obstacle to profitability unique to Rivian,” not merely a “garden-variety” problem.

“The inference that Rivian senior executives knew that the (bill of materials) cost for each R1 EV exceeded its retail price by approximately $40,000 leading up to the IPO is far more plausible than the inference that those executives were in the dark about the issue,” Staton added.

Rivian spokesman Harry Porter declined to comment, saying Rivian does not discuss pending litigation. Lawyers for Swedish pension fund Sjunde AP-Fonden, the lead plaintiff in the proposed class action, did not immediately respond to requests for comment.

Staton also refused to dismiss claims against the IPO’s lead underwriters Goldman Sachs, JPMorgan Chase and Morgan Stanley.

Backed by Amazon.com, Rivian went public at $78.00 per share on Nov. 10, 2021, raising about $12 billion in that year’s largest IPO.

The lawsuit covers shareholders from that date to March 10, 2022.

In morning trading, Rivian shares were up 10 percent at $23.80 on the Nasdaq.

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Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

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