This Class Action Opt Out Process Should be Illegal

[SoCal Rob]

I did a quick search and couldn’t find a good match so please excuse me if this is redundant. I just read a postcard I got in the mail regarding a class action suit against Rivian from a class which includes stockholders during a certain window. While I would qualify, I don’t want to be part of the class action because I consider it to be frivolous. However, the process of opting out is beyond onerous, in my opinion:

To exclude yourself, you must send a letter or email stating that you "request exclusion from the Class in Charles Larry Crews, Jr., et al. v. Rivian Automotive, Inc., et al., Case No. 2:22-cv-01524-JLS-E." Your request must: (i) state the full name, address, and telephone number of the person/entity requesting exclusion, and be signed; and (ii) state the amount of Rivian Class A common stock purchased, acquired and/or sold between November 10, 2021, and March 10, 2022, inclusive, by the person/entity requesting exclusion, as well as the dates and prices of each such purchase, acquisition and/or sale. If you request exclusion via email, an e-signature is acceptable. You must mail/email your exclusion request by no later than March 4, 2025

WTF!?

Since when do I have to submit a lengthy homework assignment to opt out of something? So, I need to exactly quote their language, give them my identifying information, and provide them with my transaction history?

This should be illegal or, at a bare minimum, I should receive compensation for the time I put into opting out since I suddenly have work to do that I never asked for.

To the law firm responsible for this bit of grift, I will jump through these hoops just so you receive less money and say
???

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[Donald Stanfield]

You should have to opt in not opt out. I don't know how auto opt-in is allowed.

 

[Seano]

Seems strange on so many levels: would seem if opt out, they would need proof that someone received information and decided not too?

 

[RWerksman]

This is very common, unfortunately.

Unless you plan on independently suing Rivian for some of their IPO actions, it's probably not even worth worrying about it.

Source: Me. I worked at a law firm for 15+ years. (no, I am not an attorney)

 

[SoCal Rob]

You should have to opt in not opt out. I don't know how auto opt-in is allowed.

I’m seriously thinking of documenting the time I spend doing this and filing a small claims suit against the firm for the compensation. Maybe lodge a complaint with the bar? I am REALLY annoyed.

 

[Donald Stanfield]

I’m seriously thinking of documenting the time I spend doing this and filing a small claims suit against the firm for the compensation. Maybe lodge a complaint with the bar? I am REALLY annoyed.

I wouldn't file a claim unless you're willing to spend thousands of dollars while they file endless motions to waste your time. Filing a complaint with the bar would be less effort.

 

[Hereforthesnacks]

I’m seriously thinking of documenting the time I spend doing this and filing a small claims suit against the firm for the compensation. Maybe lodge a complaint with the bar? I am REALLY annoyed.

So you would spent more time and money to lose within 5 seconds of your complaint being filed?

 

[electruck]

Can we file a new class action against this class action because the opt-out is designed to be so onerous as to discourage opting out pehaps being designed to inflate the size of the class (ie, people who actually feel mislead by Rivian - which I do not)?

 

[COdogman]

 

[Hereforthesnacks]

Can we file a new class action against this class action because the opt-out is designed to be so onerous as to discourage opting out pehaps being designed to inflate the size of the class (ie, people who actually feel mislead by Rivian - which I do not)?

You can do whatever your little heart desires!

 

[Zoidz]

The whole class action process is ridiculous. Nobody wins except the law firms. I'd love to see significant reform, including a requirement that 85% or 90% of the settlement gets paid to the class members. That of course will never happen.

 

[SoCal Rob]

So you would spent more time and money to lose within 5 seconds of your complaint being filed?

Yes, because if nobody does anything, what’s to stop them from bringing suit after suit with the same strategy including unwilling people in their ridiculous policy? They’ve generated more person-hours of work for OTHER PEOPLE to do than I care to calculate On this one law suit alone. What if they choose to use the same strategy every time someone who doesn’t understand how stocks work gets annoyed that they lost money?

 

[Hereforthesnacks]

Yes, because if nobody does anything, what’s to stop them from bringing suit after suit with the same strategy including unwilling people in their ridiculous policy? They’ve generated more person-hours of work for OTHER PEOPLE to do than I care to calculate On this one law suit alone. What if they choose to use the same strategy every time someone who doesn’t understand how stocks work gets annoyed that they lost money?

Class actions are great and terrible. They can leverage the little guy. They can be frivolous. But all cases can be frivolous. If there is no case, the court will kick it.

 

[RWerksman]

The whole class action process is ridiculous. Nobody wins except the law firms. I'd love to see significant reform, including a requirement that 85% or 90% of the settlement gets paid to the class members. That of course will never happen.

The initial litigant does get a higher settlement - low thousands. Realistically, one could argue that we all win when corporations are held accountable. That assumes that it's done correctly and judiciously, which many times it isn't. I've observed that most of the time these are settled and go away with the defendant admitting no guilt.

If memory serves, this case is about Rivian allegedly misleading investors as to how profitable (or unprofitable) their vehicles were upon sale. The whole case appears to hinge on the argument that Rivian knowingly mislead investors because they were selling vehicles at a loss and 100% were going to raise prices, which would impact their highly touted reservation backlog.

Is it legit? It doesn't really matter - we don't have a say unless we work for Rivian, either law firm representing litigants, or somehow get selected to a jury to decide it later. (or we are the judge an even later appeal)

I do feel it like it's work noting that the plaintiff law firm does appear to have an intake team that may have actively prospected for lead clients on this case or others, FWIW.

Also FWIW, Rivian directly has opt-out classes for mediation and whatnot. They allow you to opt out using via email, which feels much more reasonable to me, and I've done with them in the past.

 

[TexasBob]

Class action lawsuit lawyer fees (in fact all contingent lawyer fees) ought to be limited to 3x the local market going rate x the number of actual billable hours they spend on the case. That would clean up this mess while still creating an incentive for high quality contingent lawsuits to move forward.

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