Rivian will pay $250M to settle lawsuit over R1 price hike

Rivian has agreed to pay $250 million to settle a class-action shareholder lawsuit stemming from the company's 2022 price hikes on its R1 pickup truck and SUV. The lawsuit accused Rivian of making misleading statements about the costs of building the R1 electric vehicles in its 2021 IPO filings, which allegedly contributed to the stock price decline following the price increase announcement. While Rivian denies any wrongdoing, the settlement requires approval from a U.S. District Court judge. If approved, $67 million will be covered by the company’s directors’ and officers’ liability insurance, with the remaining $183 million paid from cash reserves; Rivian had $4.8 billion in cash as of mid-2024. The settlement arrives as Rivian faces challenges with lagging R1 sales, compounded by tariffs and the loss of federal EV tax credits. The company is restructuring, including layoffs of over 600 employees and CEO RJ Scaringe assuming interim chief marketing officer duties. Meanwhile, Riv