Rivian Automotive, Inc.

Case Details

Class Period: August 12, 2022 - February 21, 2024
Date Filed: May 31, 2024
Case Number: 2:24-cv-04566
Jurisdiction: Central District of California
icon-casetype Case Type: Securities Case
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Case Summary

Rivian, headquartered in Irvine, California, is an automotive manufacturer that develops and builds electric vehicles (“EVs”) for both retail and commercial customers. The Complaint alleges that, throughout the Class Period, Defendants misled investors about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Rivian had overstated demand for its EVs; (ii) Rivian had concealed the negative effect inflation and higher interest rates were having on demand for its EVs; (iii) the number of orders in Rivian’s order bank had decreased due to cancellations and other factors; (iv) Rivian was failing to ramp up its production of EVs at the rate it claimed; (v) all the foregoing was likely to, and did, negatively impact the Company’s anticipated earnings and vehicle production targets for 2024; and (vi) as a result, the Company’s public statements were materially false and misleading at all relevant times.

Defendants’ fraud began to be revealed to the market on February 28, 2023, when Rivian announced a lower-than-expected 2023 EV production target. On this news, Rivian’s stock price fell $3.54 per share, or more than 18 percent, to close at $15.76 per share on March 1, 2023. Then, on February 21, 2024, Rivian announced wider-than-expected anticipated losses for 2024. Rivian also issued lower-than-expected 2024 EV production guidance and announced it would cut 10% of salaried staff. On this news, Rivian’s stock price fell $3.94 per share, or more than 25 percent, to close at $11.45 per share on February 22, 2024.