Rivian agrees to $250m settlement in 2022 IPO lawsuit

Core Points - Rivian Automotive has reached a $250 million agreement to settle a securities class action lawsuit filed in 2022 regarding its IPO disclosures and post-IPO statements [1][2][3] - The lawsuit alleged that Rivian failed to disclose material risks, particularly concerning the costs of materials for its R1S and R1T models exceeding their sales prices, which led to a price increase for the R1 vehicles [2] - Rivian maintains that the settlement does not imply any admission of fault or wrongdoing, allowing the company to focus on launching its mass-market R2 vehicle in the first half of 2026 [3] Financial Details - The settlement amount of $250 million will be funded by $67 million from directors' and officers' liability insurance and $183 million from the company's cash reserves [4] - The proposed settlement, pending court approval, will resolve all claims against Rivian and other defendants involved in the action [4] Company Overview - Rivian develops and manufactures electric vehicles (EVs) and provides associated software and services, distributing its vehicles directly to consumer and commercial customers in the US [4]