News Summary

Rivian, the electric vehicle manufacturer, has agreed to pay $250 million to settle a class-action lawsuit filed by shareholders. The lawsuit accused Rivian of misleading investors around the time of its 2021 IPO by not disclosing that the R1S SUV and R1T truck were initially priced below production costs. The lawsuit stemmed from a March 2022 price increase of $12,000 for these vehicles, which Rivian eventually reversed for customers who had pre-ordered. The settlement aims to allow Rivian to focus on the upcoming launch of its R2 vehicle. The settlement is still pending approval from the US District Court for the Central District of California.