The Class: Shareholder rights law firm Robbins LLP is investigating Rivian Automotive, Inc. (NASDAQ: RIVN) and its officers and directors to determine if the Company made false and misleading statements in its Offering Documents in Support of its initial public offering ("IPO").
If you would like more information about our investigation into Rivian Automotive, Inc.'s misconduct, click here.
What this Investigation is About: Rivian designs and manufactures electric vehicles – the R1T electric pickup truck and R1S electric SUV. Rivian began selling the R1T in September 2021 and planned to begin selling the R1S in December 2021. As of October 31, 2021, Rivian reported "approximately 55,400 R1T and R1S preorders in the United States and Canada from customers who paid a cancellable and fully refundable deposit of $1,000." At the time of its IPO, Rivian planned to produce approximately 1,200 R1Ts and 25 R1Ss by the end of 2021, with all preorders filled by the end of 2023.
Rivian completed its IPO on November 10, 2021, selling shares at $78.00 per share for total proceeds of $11.93 billion. However, unbeknownst to investors, the Registration Statement failed to disclose that Rivian underpriced the R1T and R1S to such a degree that the Company would have to raise prices shortly after the IPO. Subsequently, these price increases would tarnish Rivian's reputation as a trustworthy and transparent Company and would put a significant number of its backlog orders as well as future orders in jeopardy of cancellation. Accordingly, the price of the Company's shares was artificially inflated at the time of the IPO. As Rivian announced its plans to increase its prices, its shares took a hit. Rivian stock now trades near $38.00 per share, significantly below the Company's $78.00 IPO price.
Next Steps: If you acquired shares of Rivian Automotive, Inc. pursuant to the Company's IPO, you have legal options. Contact us for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Aaron Dumas
(800) 350-6003
adumas@robbinsllp.com
Shareholder Information Form
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Rivian Automotive, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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