News Summary

Rivian has agreed to pay $250 million to settle a class-action shareholder lawsuit, which was filed after the company increased prices on its R1 pickup truck and SUV in 2022. The lawsuit accused Rivian of including misleading statements in its IPO documents regarding the costs of building the R1 vehicles. Despite agreeing to the settlement, Rivian denies any wrongdoing. The settlement awaits approval from a judge in the U.S. District Court for the Central District of California. Rivian plans to cover part of the settlement through its insurance and the rest from its cash reserves. The company, which delivered its first R1 vehicles in late 2021, faced backlash after the price hike announcement, which affected both new orders and preorders, leading to a decline in its stock price. This announcement also came during a time when Rivian is preparing to launch its more affordable R2 SUV in 2026, aimed at increasing production capacity.