"Electric vehicle startup Rivian announced on Thursday that it has settled a lawsuit with some of its investors. The company continues to deny allegations of making "materially untrue" statements during its inial public offering but says it agreed to pay $250 million to clear itself of distractions as it focuses on building its next EV, the mass-market R2, which is due next year."
"Just a few months after its November 2021 IPO, the company had indeed issued a hefty price hike: $79,500 for the R1T and $84,500 for the R1S SUV. After an outcry, the company said it would honor the original price for its existing preorders. By that point, though, the damage was done, and more than a third of the company's value was erased within a few days, the lawsuit alleged."
Rivian settled a lawsuit with some investors for $250 million while denying that it made materially untrue statements during its initial public offering. The company said it agreed to the payment to remove distractions and focus on building the mass-market R2 EV due next year. A shareholder suit filed in 2022 alleged Rivian knew production costs for the R1T and R1S exceeded the advertised $67,500 and $70,000 prices and that a large price increase could prompt preorder cancellations. The company raised R1T and R1S prices months after its November 2021 IPO, later honoring original preorder prices but suffering a steep market-value decline.
Read at Ars Technica
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