Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Rivian To Contact Him Directly To Discuss Their Options
New York, New York--(Newsfile Corp. - April 12, 2022) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Rivian Automotive, Inc. ("Rivian" or the "Company") (NASDAQ: RIVN) and reminds investors of the May 6, 2022 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Rivian stock or options (a) pursuant to and/or traceable to Rivian's Initial Public Offering ("IPO") on November 10, 2021 and/or (b) between November 10, 2021, and March 10, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/RIVN.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Rivian would not meet its 2021 production and delivery targets; (2) Rivian's vehicles were underpriced and the Company would need to substantially increase prices; and (3) as a result, Defendants' representations about the Company's business, operations, and prospects lacked a reasonable basis.
Rivian is an electric vehicle company that in 2018 unveiled its first consumer EV's, the R1T electric pickup truck, and the R1S electric SUV.
On November 10, 2021, Rivian offered 153 million shares to the public through an IPO at a price of $78.00 per share for total proceeds of $11.93 billion.
According to the Registration Statement, the "R1T and R1S introduce our brand to the world and will serve as our flagship vehicles as we continue to expand our offerings."
Rivian's focus on its reputation for transparency and devotion to its customers, along with Rivian's R1T and R1S, including the large number of preorders and potential for increased demand were key selling points to IPO investors.
Unbeknownst to investors, however, the Registration Statement's representations were materially inaccurate, misleading, and/or incomplete because they failed to disclose, among other things, that the R1T and R1S were underpriced to such a degree that Rivian would have to raise prices shortly after the IPO and that these price increases would tarnish Rivian's reputation as a trustworthy and transparent company and would put a significant number of the existing backlog of 55,400 preorders along with future preorders in jeopardy of cancellation.
As a result, the price of the Company's shares was artificially and materially inflated at the time of the Offering.
On March 1, 2022, Rivian announced that it was raising the prices of its R1T pickup and R1S SUV by 17 percent and 20 percent, respectively, 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. A March 2, 2022 article in the online publication ARS Technica, titled "Rivian surprises, outrages EV truck buyers with 20% price hike," questioned the reasons behind the price increases. An article published in Electrek on March 2, 2022, titled "Rivian buyers are cancelling at alarming rates after price increases," noted that: "A poll on the Rivian subreddit, one of the biggest communities of Rivian fans, gives us a better idea of the pulse of the reservation holders, and it shows a high cancelation rate" and provided a screenshot of the poll, which showed a majority of voters planned to cancel their reservations.
By the commencement of the class action lawsuit, the price of Rivian shares closed at $42.43 per share, significantly below their $78.00 IPO Price.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Rivian's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/120249
