Class Action Lawsuit - $250M - "False and misleading statements"

[Zoidz]

This was posted on reddit today - a $250M Class Action letter from Morgan Stanley to shareholders. It excludes IPO purchasers. Details at RivianSecuritiesLitigation.com

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[savethemanual]

Attorneys have to feed their families too!

This is lame.

 

[Zoidz]

Attorneys have to feed their families too!

This is lame.

Google says typical class action fees are 25%-40%. Let's assume this is 33%, that's $82M worth of Happy Meals.

Ridiculous fees for a marginal, at best, lawsuit. You know what you are getting into when you buy a startup company stock that has yet to ship a product.

 

[csharp]

Its been out for a while. Here is a thread about it from over a year ago.

https://www.rivianforums.com/forum/threads/this-class-action-opt-out-process-should-be-illegal.38500

 

[loqueid]

Glad our investment monies are going to things like this instead of development and a brighter EV future...

 

[NY_Rob]

I got a similar letter last week because I bought IPO shares... I guess there's several CA filings against Rivian currently?

Bloodsuckers....

 

[mudito]

I got the letter, opted out from it.

 

[mkhuffman]

"Plaintiffs alleged that Defendants violated the federal securities laws by making materially false and misleading statements and failing to disclose material facts and risks arising from, among other things, the alleged fact that the bill of materials cost of Rivian’s R1S and R1T (together, "R1") electric vehicles far exceeded the sales price at which these vehicles were being offered to customers, requiring Rivian to increase prices. Defendants deny all of the allegations of wrongdoing asserted in the Action and deny any liability whatsoever to any member of the Classes. "

I don't recall Rivian ever claiming they would be profitable on the first units produced. Also, COVID hit and caused their BOM and labor costs to increase.

This is just a money grab. I can't believe they can get away with this kind of crap.

They "have agreed to settle the Action for $250,000,000 in cash. The Court preliminarily approved the Settlement by Order dated December 18, 2025. "

I guess I am going to get some of this. I doubt it will be more than a few dollars.

 

[HaveBlue]

You can't wake up in the morning without breaking some law.

 

[captainjp]

I got a similar letter last week because I bought IPO shares... I guess there's several CA filings against Rivian currently?

Bloodsuckers....

It’s sour grapes.

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