NEW YORK, March 21, 2022 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Rivian Automotive, Inc. (“Rivian” or the “Company”) (NASDAQ: RIVN) in the United States District Court for the Central District of California on behalf of investors who purchased Company stock pursuant to the Company’s November 19, 2021 initial public offering (“IPO”)
The Complaint alleges that Rivian began selling the R1T in September 2021 and planned to begin selling the R1S in December 2021. As of October 31, 2021, Rivian reported “approximately 55,400 R1T and R1S preorders in the United States and Canada from customers who paid a cancellable and fully refundable deposit of $1,000.” At the time of its IPO, Rivian planned to produce approximately 1,200 R1Ts and 25 R1Ss by the end of 2021, with the all preorders filled by end of 2023.
Rivian completed its IPO on November 10, 2021, selling shares at $78.00 per share for total proceeds of $11.93 billion. However, unbeknownst to investors, the Registration Statement failed to disclose that the R1T and R1S were underpriced to such a degree that Rivian would have to raise prices shortly after the IPO. Subsequently, these price increases would tarnish Rivian’s reputation as a trustworthy and transparent Company and would put a significant number of its backlog orders as well as future orders in jeopardy of cancellation. Accordingly, the price of the Company’s shares was artificially inflated at the time of the IPO. At the time the complaint was filed, Rivian shares traded at $42.43 per share, significantly below the Company’s $78.00 IPO price.
Investors who purchased or otherwise acquired shares of Rivian should contact the Firm prior to the May 6, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
