Class action suit against Rivian

[citizen]

Ambulance chasers are moving forward . Just got this in my email today from National Financial Services / Verita Global
.
https://www.riviansecuritieslitigation.com/

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[Riviot]

Ambulance chasers are moving forward . Just got this in my email today from National Financial Services / Verita Global
.
https://www.riviansecuritieslitigation.com/

Ditto from Schwab

 

[Rade]

I got that in my inbox this morning, too: " ...its post-IPO statements to investors during an earnings call and filing with the U.S. Securities Exchange Commission on December 17, 2021) 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 R1 retail prices. "

Oh my gosh! The cost of goods and services went up in the wake of the Covid pandemic and Rivian had to pass that expense along to the consumer! Oh! The horror! How DARE they!

The class action lawsuit fails to mention that Rivian owned up to that fiasco and did an about face on the price increase, allowing people who previously reserved their vehicles to obtain them at the initial price. Those reservations AFTER that time frame would then reflect the increased cost.

This is just a fishing expedition for people still crying sour grapes about that initial price hike.

 

[UnsungZero_OldTimeAdMan]

Got same email. My guess it will get thrown out. Losses are inherent in any investment. No way these people weren’t aware of risks. They’re fishing and gambling for a sympathetic court or a Rivian who’d just settle (not gonna happen).

 

[E. Swenson]

I received a notice also about the lawsuit. My question is...Who is behind this suit? A way for the competition to push against Rivian> Musk? It looks like it is moving forward. Yes I did buy stock..I am in it for the long haul, loyal to Rivian.

 

[UnsungZero_OldTimeAdMan]

I received a notice also about the lawsuit. My question is...Who is behind this suit? A way for the competition to push against Rivian> Musk? It looks like it is moving forward. Yes I did buy stock..I am in it for the long haul, loyal to Rivian.

Lawyers looking to make easy money. That’s who stands to benefit most if settled.

 

[E. Swenson]

Lawyers looking to make easy money. That’s who stands to benefit most if settled.

Yes, that is always the case. The main character behind the suit is a character named Glen Dietel, an actor who was in the Austin Powers movie, Gold member and a few other films. I think he is a front for someone else determined to undermine Rivian...

 

[Hereforthesnacks]

A lot of lawyers on this forum ?

 

[E. Swenson]

A lot of lawyers on this forum ?

Well, they should chime in and give some insight about this case...

 

[Paul Hackett]

Well, they should chime in and give some insight about this case...

The class has been certified and it's very unlikely the substantive assertions contained in paragraphs 214 through 224 of the complaint are going to be thrown out, or that Defense Motions for Summary Judgement be granted.

Discovery will take place in a time frame generally set out by the Court, Motions for Summary Judgement on various relevant issues will be heard after which settlement negotiations will start in earnest and likely conclude shortly before trial.

This is a process that keeps everyone honest; Plaintiffs' counsel, Defense Counsel, and Defendants alike. There is no easy money in this business; big money yes, easy no.

 

[Oldsmobile_Mike]

Ditto from Schwab

Ditto from E*Trade. Ignoring it. As someone involved in two relatively large legal battles at this time already, I speak from experience that the only people going to make money are the lawyers. ?

 

[SANZC02]

…, 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 R1 retail prices. "…

This statement is pretty misleading, the accumulated BOM cost was not higher, the loss came from fixed costs which was not unexpected. The issue with prolonged losses was the ramp up because of part availability took much longer than expected.

Edit: They also were hit with penalties from some contracts for not meeting expected purchasing quantities because of the slow ramp.

 

[Riviot]

Ditto from E*Trade. Ignoring it. As someone involved in two relatively large legal battles at this time already, I speak from experience that the only people going to make money are the lawyers. ?

What are you talking about? There's tons of money to be had for us plebs. That $13.38 settlement I got from Equifax paid for half of my donuts yesterday!

 

[VSG]

This is a process that keeps everyone honest; Plaintiffs' counsel, Defense Counsel, and Defendants alike. There is no easy money in this business; big money yes, easy no.

In theory that should be a moderating factor. In practice, the wins bring enough mad money to pay for the losses. Like venture capitalists who can invest in a dozen failures but still strike it rich with that one startup - they are incentivized to open as many cases as possible because by random chance one of those is going to give huge payoffs. You don't really need to believe in the claims in order to have a chance of winning. And that is personally my biggest problem with these class-action lawsuits - win or lose, many of them clearly are not brought in order to make the world a better place. They are started for money, and to get people/companies with money to give that money to other people.

In this case, I personally read all the Rivian disclosures and did my research and made a decision whether to buy the stock or not. They didn't deceive me. Everything that has happened since, good or bad, is well within the range of what was expected and predicted and disclosed. I feel that people who took a bath on the IPO deceived themselves - they were looking to get rich quick, and when that didn't happened they started to look for someone to blame so they could get rich slow from a lawsuit. Speculators and gamblers, who played the odds and lost.

If there were real harm here to real people who Rivian solicited by guaranteeing in writing a return from their investment, then that would be a different story. But in this case we had a startup that was a known risky investment. How many new automakers have successfully launched a business in the past 75 years? And how many established automakers have gone out of business or needed a bail out? Is there really anyone who believes in their heart that this was a "sure thing"?

 

[UnsungZero_OldTimeAdMan]

The class has been certified and it's very unlikely the substantive assertions contained in paragraphs 214 through 224 of the complaint are going to be thrown out, or that Defense Motions for Summary Judgement be granted.

Discovery will take place in a time frame generally set out by the Court, Motions for Summary Judgement on various relevant issues will be heard after which settlement negotiations will start in earnest and likely conclude shortly before trial.

This is a process that keeps everyone honest; Plaintiffs' counsel, Defense Counsel, and Defendants alike. There is no easy money in this business; big money yes, easy no.

Ah so it’s still attempt to extort, just by the books. Got it.

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