RADNOR, Pa., March 23, 2022 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that the firm has filed a securities class action in the United States District Court for the Central District of California against Rivian Automotive, Inc. (“Rivian”) (NASDAQ: RIVN). This action is captioned Albert Nicholas Horvath v. Rivian Automotive, Inc., et al., Case No. 8:22-cv-00444 (the “Horvath Action”) and is brought on behalf of investors who purchased Rivian common stock between November 10, 2021 and March 10, 2022, inclusive (the “Class Period”), and/or pursuant and/or traceable to the Registration Statement issued in connection with Rivian’s November 2021 initial public offering (the “IPO”).
There is another related class action case pending against Rivian in the United States District Court for the Central District of California. That first-filed action issued a notice of its filing pursuant to the federal securities laws which triggered the deadline of May 6, 2022, for any investors who purchased Rivian common stock to seek to be appointed as a lead plaintiff representative of the class. The filing of the Horvath Action does not change the May 6, 2022 lead plaintiff deadline.
CLICK HERE TO SUBMIT YOUR RIVIAN LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE IN YOUR BROWSER: https://www.ktmc.com/new-cases/rivian-automotive-inc?utm_source=PR&utm_medium=link&utm_campaign=rivian
LEAD PLAINTIFF DEADLINE: May 6, 2022
CLASS PERIOD: November 10, 2021 through March 10, 2022
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or Email at info@ktmc.com
RIVIAN’S ALLEGED MISCONDUCT
Rivian, a Delaware corporation with principal executive offices in Irvine, California, designs, develops, and manufactures electric vehicles (“EVs”), including an electric SUV (the “R1S”) and an electric pickup truck (the “R1T”).
Rivian completed its $13.7 billion IPO in November 2021. IPO related documents filed with the U.S. Securities and Exchange Commission represented—among other things—that Rivian had 55,400 combined preorders for the R1T and R1S, and that Rivian planned to “produce approximately 1,200 R1Ts and 25 R1Ss and deliver approximately 1,000 R1Ts and 15 R1Ss” by the end of 2021.
Investors began to learn the truth about Rivian on December 16, 2021, when the Company disclosed that it would fall “a few hundred vehicles short of [its] 2021 production target of 1,200 [vehicles].” In addition to admitting that production was lagging behind, Robert J. Scaringe—Rivian’s Founder, Chief Executive Officer, and Chairman—acknowledged that Rivian’s vehicles were “very aggressively priced” and that, against “the backdrop of inflation,” Rivian was “look[ing] at our pricing.” Following this news, Rivian’s stock price fell $11.17 per share, or more than 10%, from a close of $108.87 per share on December 16, 2021, to close at $97.70 per share on December 17, 2021.
Then, on March 1, 2022, Rivian announced that it would dramatically increase the starting price of the R1T by about 17% (to approximately $79,000 from $67,500), and the R1S by about 20% (to approximately $84,500 from $70,000). Notably, these price changes would apply not only to future orders, but also to existing preorders (many of which had been placed as long as three or more years ago). According to Jiten Behl—Rivian’s Chief Growth Officer—the price increases were the result of “inflationary pressure, increasing component costs, and unprecedented supply chain shortages and delays for parts (including semiconductor chips).” Following this news, Rivian’s stock price fell $8.35 per share, or more than 13%, from a close of $61.91 per share on March 1, 2022, to close at $53.56 per share on March 2, 2022.
Just two days later, on March 3, 2022, the defendants retracted aspects of the price increases, now announcing that preorders that had been placed before March 1, 2022, would not be subject to the new prices, and that customers who had cancelled their preorders could reinstate their orders at the original prices. Mr. Scaringe admitted that applying the price increases to existing preorders was “wrong” and “broke [customers’] trust in Rivian.” Following this news, Rivian’s stock price fell an additional $2.65 per share, or approximately 5%, from a close of $53.56 per share on March 2, 2022, to close at $50.91 per share on March 3, 2022.
Finally, on March 10, 2022, Rivian announced disappointing financial results for the fourth quarter of fiscal year 2021, including revenue and adjusted losses per share that fell far below analysts’ estimates. Additionally, while analysts had expected Rivian to produce 40,000 vehicles in 2022, the defendants disclosed that Rivian expected to produce only 25,000 vehicles in 2022. Following this news, Rivian’s stock price fell $3.11 per share, or approximately 7.5%, from a close of $41.16 per share on March 10, 2022, to close at $38.05 per share on March 11, 2022.
The complaint alleges that, in the Registration Statement and throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Rivian would not meet its 2021 production and delivery targets; (2) Rivian’s vehicles were underpriced and Rivian would need to substantially increase prices; and (3) as a result, the defendants’ representations about Rivian’s business, operations, and prospects lacked a reasonable basis.
WHAT CAN I DO?
Rivian investors may, no later than May 6, 2022 seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class Kessler Topaz Meltzer & Check, LLP encourages Rivian investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. At the end of the day, we have succeeded if the bad guys pay up, and if you recover your assets. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
(484) 270-1453
info@ktmc.com
