Rivian Automotive, Inc. (NASDAQ:RIVN) announced today it has agreed to resolve a 2022 securities class‑action lawsuit that alleged the company misrepresented vehicle costs and pricing during its 2021 IPO and subsequent price hikes. The settlement will total $250 million, with $67 million coming from directors’ and officers’ liability insurance and $183 million funded from the company’s cash reserves.
The company stated that the settlement does not constitute an admission of fault or wrongdoing. By resolving the litigation, Rivian aims to eliminate the legal uncertainty surrounding the claims and free management to focus on its upcoming mass‑market R2 SUV launch slated for 2026.
This settlement represents a material cash outlay for Rivian but is not a catastrophic event; it resolves a long‑standing shareholder dispute and allows the company to concentrate resources on its strategic product roadmap without admitting liability.
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