Class action suit against Rivian

[Electron]

"CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Tesla investors who were adversely affected by alleged securities fraud between March 1, 2023 and February 21, 2024. Follow the link below to get more information and be contacted by a member of our team:

...Tesla-automotive-inc-lawsuit-submission-form?prid=80985&wire=4

TSLA investors may also contact ....

CASE DETAILS: The filed complaint alleges that defendants made false statements and/or concealed that: (i) Tesla had overstated demand for its products, as well as its ability to withstand negative, near-term macroeconomic impacts; (ii) accordingly, Tesla's business was experiencing reduced demand and increased customer cancellations as a result of, inter alia, high interest rates; (iii) as a result, Tesla's order bank had significantly deteriorated; (iv) all the foregoing was likely to, and did, negatively impact the Company's anticipated earnings and vehicle production targets for 2024; and (v) as a result, the Company's public statements were materially false and misleading at all relevant times.

WHAT'S NEXT? If you suffered a loss in Tesla during the relevant time frame, you have until June 18, 2024 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff."


There we go. Now it's proper. Tesla is hurting with their Model Y sales and the numbers will be nowhere near what we saw before. They're hurting in ways that will turn off investors.

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[Eric9610]

Exactly. Like Tesla's overinflated range claims. Tesla is so much worse in so many ways. How about the rug pull with the massive price drop, leaving people upside down overnight etc. I always laugh when I see the adjusted 279 miles on the website for the MYP, when it used to be over 300.

What would be more proper is to take that website and replace Rivian with Tesla and then we'd be all in.

And the new range is a WAG on the Y's. Rivian has been so above board and transparent.

The thing that is concerning for Gen 1 owners is if they stop mapping roads for driver +. This could be a costly penalty for Rivian, one that would probably kill them. Imagine them being forced to make hardware upgrade kits for G2 component to fit G1's.

 

[Mickey]

I'm hoping that these people are just doing a fishing expedition and that this doesn't get off the ground.

Class Action Filed Against Rivian Automotive, Inc. (RIVN) Seeking Recovery for Investors

Me too. It’s totally stupid! Invest with your eyes wide open (just as I did) and know the risks or DON’T invest… in any startup!

 

[ccharie]

It will surprise me if this goes anywhere. All of their 10k filings have tons of warnings about their ability to succeed.

It will be even harder seeing that the stock did go up after the IPO so anyone buying on day 1 of the IPO could have made money if they sold prior to 1/9/2022.

These class action suits prove to be less than profitable for consumers (not the class action attorneys). I recently was awarded 0.12 cents as part of the Google class action settlement. What a joke.

 

[BeanEW]

So stupid... just happened that the winners from class actions had the same occupation... lawyers.

 

[Hillbilly]

So stupid... just happened that the winners from class actions had the same occupation... lawyers.

The lawyers profit, but the winners in class action suits are the consumers.

 

[Dave Cundiff]

The lawyers profit, but the winners in class action suits are the consumers.

Sometimes, @Hillbilly. I also see class action settlements where the benefit to consumers is trivial, but the attorney fees extracted from the corporation are quite large.

"No matter how cynical you get, some days it is difficult to keep up." --Lily Tomlin

The best attorneys provide real value to clients and to society. The worst appear to provide value only to themselves.

Best wishes!

 

[Hillbilly]

Sometimes, @Hillbilly. I also see class action settlements where the benefit to consumers is trivial, but the attorney fees extracted from the corporation are quite large.

"No matter how cynical you get, some days it is difficult to keep up." --Lily Tomlin

The best attorneys provide real value to clients and to society. The worst appear to provide value only to themselves.

Best wishes!

I feel like most people miss the point of class actions. Even if it's just pennies that the customers get, that's exactly why they're useful in situations where the victim would never bring suit on their own individually. The lawyers still have to do the heavy lifting and, being contingency based, aren't assured anything from simply filing a claim. Without them, companies would be more likely to defraud customers on a wide scale knowing that there's nothing that anyone's going to do about it.

 

[DuoRivian]

I feel like most people miss the point of class actions. Even if it's just pennies that the customers get, that's exactly why they're useful in situations where the victim would never bring suit on their own individually. The lawyers still have to do the heavy lifting and, being contingency based, aren't assured anything from simply filing a claim. Without them, companies would be more likely to defraud customers on a wide scale knowing that there's nothing that anyone's going to do about it.

You don’t happen to be a lawyer or married to one do you?

 

[Hillbilly]

You don’t happen to be a lawyer or married to one do you?

I am a litigator. I do not do class actions.

Anyone that has sat through a 1L torts class has covered this topic and it's importance though.

 

[Dave Cundiff]

I feel like most people miss the point of class actions. Even if it's just pennies that the customers get, that's exactly why they're useful in situations where the victim would never bring suit on their own individually. The lawyers still have to do the heavy lifting and, being contingency based, aren't assured anything from simply filing a claim. Without them, companies would be more likely to defraud customers on a wide scale knowing that there's nothing that anyone's going to do about it.

I believe that sometimes this idealistic take is accurate, @Hillbilly. I also perceive that sometimes it's not.

I definitely wouldn't want to live in a society without lawyers, AND every profession (including the law) needs a combination of self-regulation and external regulation.

Very best wishes!

 

[VSG]

Without them, companies would be more likely to defraud customers on a wide scale knowing that there's nothing that anyone's going to do about it.

While that may be true in principle, this thread is about a very specific class action filed against Rivian which AFAIC is complete bullshit. In this case, the class is just butt sore because they lost money on a speculative investment and need to blame someone else for it. In the big picture, Rivian has done far *better* than expected. Look at all the other startup auto manufacturers and see what shape they're in. Rivian is one of the few left standing, which is a major accomplishment in and of itself. And the fact that they weathered the pandemic, when even well-established companies got clobbered, confirms the strength of their business planning. But some people bought into Rivian expecting it to be a sure-thing-get-rich-quick scheme, which it never represented itself as, and when that didn't happen they started looking for someone to blame other than themselves.

So in this case, this class action isn't contributing to the idealistic vision of a class action as an important check and balance in the system. Instead, it's more similar to a means of extortion to get the company to settle instead of run the risk of a much larger judgement. And if that's the case, then the law firms that filed this are the main beneficiaries, and the consumer is actually hurt when a well-behaved company is punished like this by the system.

And I'm saying this as someone who has personally read all of Rivian's official filings, and forward-looking statements, and risk factors disclosures, etc. My personal investments in Rivian were (and are) based on what I read there, and I don't feel that anything they have said or predicted or warned of was deliberately inaccurate or exaggerated. The mere fact that their best-case predictions didn't come true isn't a valid reason to sue - their worst-case predictions didn't come true either. Regardless, there were piles of legal caveats attached to both.

 

[Hillbilly]

While that may be true in principle, this thread is about a very specific class action filed against Rivian which AFAIC is complete bullshit. In this case, the class is just butt sore because they lost money on a speculative investment and need to blame someone else for it. In the big picture, Rivian has done far *better* than expected. Look at all the other startup auto manufacturers and see what shape they're in. Rivian is one of the few left standing, which is a major accomplishment in and of itself. And the fact that they weathered the pandemic, when even well-established companies got clobbered, confirms the strength of their business planning. But some people bought into Rivian expecting it to be a sure-thing-get-rich-quick scheme, which it never represented itself as, and when that didn't happen they started looking for someone to blame other than themselves.

So in this case, this class action isn't contributing to the idealistic vision of a class action as an important check and balance in the system. Instead, it's more similar to a means of extortion to get the company to settle instead of run the risk of a much larger judgement. And if that's the case, then the law firms that filed this are the main beneficiaries, and the consumer is actually hurt when a well-behaved company is punished like this by the system.

And I'm saying this as someone who has personally read all of Rivian's official filings, and forward-looking statements, and risk factors disclosures, etc. My personal investments in Rivian were (and are) based on what I read there, and I don't feel that anything they have said or predicted or warned of was deliberately inaccurate or exaggerated. The mere fact that their best-case predictions didn't come true isn't a valid reason to sue - their worst-case predictions didn't come true either. Regardless, there were piles of legal caveats attached to both.

It'll be for the court to decide. If it's really BS (and it sounds like it is) then it won't survive a motion to dismiss or motion for summary judgment.

 

[RivAW]

And the new range is a WAG on the Y's. Rivian has been so above board and transparent.

The thing that is concerning for Gen 1 owners is if they stop mapping roads for driver +. This could be a costly penalty for Rivian, one that would probably kill them. Imagine them being forced to make hardware upgrade kits for G2 component to fit G1's.

I don’t think they need to upgrade the hardware to change the navigation software to use an alternative like Google or Waze….its all software based aside from the vehicle location/GPS.
Out of the things to be potentially concerned about, this is not one

 

[Eric9610]

I don’t think they need to upgrade the hardware to change the navigation software to use an alternative like Google or Waze….its all software based aside from the vehicle location/GPS.
Out of the things to be potentially concerned about, this is not one

You do know that Driver + does not work on any road that has not been pre mapped... This is how Ford, GM and Tesla do it. So, if they say only more road access is available in Gen 2, yeah, it's a big deal.

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