Rivian will pay $250M to settle lawsuit over R1 price hike

[Yota2R1T]

This seems so dumb to me.

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[Pappamoto]

What is the world coming to when you have to pay out $250mil and did nothing wrong.

 

[majorfriend]

Can we file a class action lawsuit against class action attorneys for making everything worse?

 

[SANZC02]

Can we file a class action lawsuit against class action attorneys for making everything worse?

There is truth in this…. Only winners are the law firms.

I read through some of the documents, law firms get 24% plus approved expenses. There were 176 million shares sold during IPO so if every person had an approved claim it is about $1 per share.

I’m sure the recent layoffs are in part due to Rivian needing to pay out 183 million in cash from their reserves. So employees lose and the company loses.

I‘m sure I am not the only one that could not care less about a $78 payout. Unfortunately the company cannot even get back any of the funds not dispersed.

To me the worst part is anyone could have sold their IPO shares anytime before 1/9/2022 for more than the IPO price.

 

[Donald Stanfield]

Greedy lawyers being parasites. It sucks because lawyers are a needed profession, but there are so many out there giving them a bad name.

 

[Riviot]

What is the world coming to when you have to pay out $250mil and did nothing wrong.

They are paying $250M to say "we did nothing wrong" and move on.

 

[Hereforthesnacks]

You might want to read the relevant docs first and then form an opinion.

 

[portdirect]

You might want to read the relevant docs first and then form an opinion.

Thats not how we do things on the internet Sir: opinion first, docs secon...meh

As I'm lazy - heres what the computer came up with from the complaint:

Date(s)	What Rivian Said or Did	Complaint’s Interpretation	Stock Move
Dec 16 → Dec 17 2021	Announced it would miss 2021 production target; CEO said vehicles were “very aggressively priced.”	First crack in the IPO story. Plaintiffs say this proved Rivian knew production promises were unrealistic and pricing unsustainable.	$108.87 → $97.70(-10%)
Mar 1 → Mar 2 2022	Raised R1T prices ~17% and R1S ~20%, including on existing preorders.	Revealed the underpricing issue the IPO hid. Price hikes signaled Rivian couldn’t profit at advertised prices.	$61.91 → $53.56(-13%)
Mar 2 → Mar 3 2022	Reversed hikes for prior preorders; CEO admitted applying them was “wrong.”	Proof of disarray and damaged trust. The walk-back confirmed internal mismanagement of pricing strategy.	$53.56 → $50.91(-5%)
Mar 10 → Mar 11 2022	Reported weak Q4 results and cut 2022 production goal from ~40k to 25k vehicles.	Final confirmation of overstatement. Plaintiffs say it validated that IPO production targets lacked basis.	$41.16 → $38.05(-7.5%)

Bottom line: Plaintiffs claim these drops reflect the market correcting prior inflation from bad info. Allegations only.

Reasons why they might have settled:

• Trial risk: Jury verdicts are unpredictable. A bad outcome could exceed $250M plus fees.
• Defense burn: Litigation through class cert, summary judgment, trial, and appeals can cost eight figures and 1–3 years.
• Management distraction: Discovery and testimony consume executive time and create operational drag.
• Insurance dynamics: D&O insurers often fund a large share. Insurers push for settlement when expected trial value > settlement.
• Market overhang: A live securities suit depresses valuation and complicates capital raises and partnerships.
• Discovery exposure: Emails, drafts, and board materials could be damaging even if not unlawful.
• No-admission clause: Settling without admitting liability avoids collateral estoppel in related cases.
• Reputational containment: A negotiated statement is safer than trial headlines and adverse findings.
• Plaintiff leverage: After class certification or key rulings, expected damages models can spike, raising settlement cost later.
• Opportunity cost: Cash certainty today can be preferable to uncertain, larger future cash outflows.

Bottom line: Settle to buy certainty, limit downside, and move on without a finding of fraud.

 

[bigsky]

There is a ton of financial reasons why companies settle lawsuits and include "without admitting fault or wrongdoing" as part of the settlement, e.g., cutting your losses, dismissed without prejudice.

If only I had a nickel for each time a defendant, corporation or individual, does not admit fault or wrongdoing...

 

[savethemanual]

Rivian has agreed to pay $250 million to settle a class action shareholder lawsuit filed after the company suddenly hiked prices on its R1 pickup truck and SUV in 2022.

The lawsuit alleged Rivian had included misleading statements and figures in regulatory filings in the run-up to its 2021 IPO about the costs required to build the R1 EVs. Despite agreeing to the payment, Rivian said in a press release that it “denies the allegations in the suit and maintains that this agreement to settle is not an admission of fault or wrongdoing.”

https://techcrunch.com/2025/10/24/rivian-will-pay-250m-to-settle-lawsuit-over-r1-price-hike/

 

[savethemanual]

Sorry, this has been posted already. Administrator....please delete.

 

[Count Orlok]

The Count awaits his $0.38 settlement check

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