Robbins Geller Rudman & Dowd LLP announces that the Rivian class action lawsuit now seeks to represent purchasers of Rivian Automotive, Inc. (NASDAQ: RIVN) common stock: (1) pursuant or traceable to Rivian’s initial public offering on or about November 10, 2021 (“IPO”); and (2) between November 10, 2021, and March 10, 2022, inclusive (the “Class Period”). Commenced on March 7, 2022, the first-filed Rivian class action lawsuit – captioned Crews v. Rivian Automotive, Inc., No. 22-cv-01524 (C.D. Cal.) – 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. A subsequently-filed complaint – captioned Horvath v. Rivian Automotive, Inc., No. 22-cv-00444 (C.D. Cal.) – 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 and/or Securities Exchange Act of 1934.
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 firstname.lastname@example.org. 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.
The Rivian class action lawsuit alleges that the IPO’s registration statement and defendants throughout the Class Period 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, defendants’ representations about Rivian’s business, operations, and prospects lacked a reasonable basis.
On December 16, 2021, Rivian 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, defendant 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 [their] pricing.” On this news, the price of Rivian stock declined by more than 10%.
Then, on March 1, 2022, Rivian announced that it was raising the prices of its R1T pickup and R1S SUV by 17% and 20%, 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. On this news, the price of Rivian stock declined by more than 13%.
Thereafter, on March 3, 2022, Rivian retracted aspects of the price increases, 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. Defendant Scaringe admitted that applying the price increases to existing preorders was “wrong” and “broke [customers’] trust in Rivian.” On this news, the price of Rivian stock declined by approximately 5%.
Next, 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, defendants disclosed that Rivian expected to produce only 25,000 vehicles in 2022. On this news, the price of Rivian stock fell by more than 7%, further damaging investors.
By the commencement of the first-filed Rivian class action lawsuit, the price of Rivian shares closed at $42.43 per share, significantly below their $78.00 per share 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.
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