Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Rivian Automotive, Inc. (“Rivian” or the “Company”) (NASDAQ: RIVN) common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s November 2021 initial public offering (“IPO” or the “Offering”). Rivian investors have until May 6, 2022 to file a lead plaintiff motion.
If you suffered a loss on your Rivian investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/rivian-automotive-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On November 10, 2021, Rivian conducted its initial public offering (“IPO”), selling 153 million shares of common stock for $78.00 per share.
On March 1, 2022, Rivian announced that it was raising the prices of its R1T pickup by 17% and its R1S SUV by 20%, and that the new prices would apply to nearly all preorders. At the time of the announcement, Rivian had only produced and sold roughly 1,000 vehicles while the number of preorders for the R1T and R1S had grown to approximately 71,000 as of December 15, 2021. The Company’s chief growth officer explained that the price increase was due to “inflationary pressure, increasing component costs, and unprecedented supply chain shortages and delays for parts.”
Then, on March 2, 2022, ARS Technica published an article stating that “[w]hile inflation is likely part of the story, the price hike may have been planned for a while,” citing a lawsuit by Rivian’s former VP of sales and marketing alleging that “concerns over profitability were raised in spring 2021.”
On this news, Rivian’s stock fell $8.41, or 13.5%, to close at $53.56 per share on March 2, 2022, thereby injuring investors.
Then, on March 3, 2022, Rivian’s CEO apologized to customers and stated that the Company would honor original prices for preorders placed prior to the price increase announcement. But an article by The Wall Street Journal reported that some customers who had cancelled their orders did not reinstate them “[e]ven after learning that [their] original price would be honored.”
On this news, Rivian’s stock price fell $2.65 and currently trades significantly below the IPO price.
The complaint filed alleges that the Registration Statement made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Registration Statement failed to disclose: (i) that Rivian had underpriced the R1T and R1S to such a degree that Rivian would be forced to raise prices shortly after the IPO; (ii) the potential for significant reputational damage and cancellation of fully refundable preorders for the R1T and R1S that would result from Company’s need to address its underpriced EVs by raising prices shortly after the IPO; and (iii) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Rivian common stock pursuant and/or traceable to the IPO, you may move the Court no later than May 6, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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