Rivian Settles Shareholder Lawsuit for $250 Million Amid EV Market Challenges
Rivian Automotive has agreed to pay $250 million to resolve a 2022 class-action lawsuit alleging IPO underpricing fraud. The U.S. electric vehicle Maker denied wrongdoing but opted for settlement to avoid prolonged litigation. Payment will be funded through $183 million in cash and $67 million from liability insurance.
The company faces mounting pressure as it prepares to launch its critical R2 SUV in early 2026. Rivian's CEO RJ Scaringe recently announced workforce reductions affecting 600 employees, citing necessary cost controls ahead of the R2 production ramp. The expiration of U.S. EV tax credits adds further headwinds to demand projections.
Court documents show the settlement amount will be deposited into an escrow account within 10 business days, with full payment completed within 30 days of court approval. Rivian maintains the agreement allows focus on core operations rather than legal disputes.
