SAN FRANCISCO, March 08, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges Rivian Automotive, Inc. (NASDAQ: RIVN) investors with significant losses to submit your losses now. A securities class action has been filed related to Rivian’s Nov. 2021 $11.93 billion IPO, and investors with significant losses have an opportunity to lead the case.
Class Period: Nov. 10, 2021 – Mar. 7, 2022
Lead Plaintiff Deadline: May 6, 2022
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844-916-0895
Rivian Automotive, Inc. (RIVN) Securities Class Action:
Leading up to and during Rivian’s IPO, Defendants touted the company’s 55,400 preorders for its R1T electric pickup truck and its R1S electric SUV, emphasizing that the preorders reflected the strong demand for Rivian’s trucks and key indicator of the company’s prospects.
The complaint alleges that Rivian’s IPO offering documents were materially inaccurate, misleading and/or incomplete because they failed to disclose, among other things, that: (1) the R1T and R1S were underpriced to such a degree that Rivian would have to raise prices shortly after the IPO; (2) these price increases would tarnish Rivian’s reputation as a trustworthy and transparent company; and, (3) these price increases would put a significant number of the existing backlog of 55,400 preorders along with future preorders in jeopardy of cancelation.
But on Mar. 1, 2022, Rivian announced that it was raising prices of the R1T and R1S by 17% and 20%, respectively, and that the new prices would apply to nearly all the preorders.
Then, on Mar. 2, 2022, ARS Tecnica reported that beginning in spring 2021 Rivian’s then VP of sales and marketing “started to raise the alarm about concerns she had relating to Rivian’s ability to deliver on its promises to investors” and “it was clear that the vehicles were underpriced and each sale would result in a loss for the company.” The same day, Electrik reported that Rivian buyers are canceling at alarming rates after the price increases.
These events have driven the price of Rivian shares well below the $78 IPO price.
“We’re focused on investors’ losses and proving Rivian’s IPO offering documents inaccurately portrayed the company’s pre-orders,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Rivian, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Rivian should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email RIVN@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
