Rivian is being sued by a shareholder who claimed the company misled investors in its initial public offering about how it had mispriced its EVs, leading to the price hikes a few days ago.

BOSTON, March 07, 2022 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockleviton.com), a national securities litigation firm, announces that it has filed a class action lawsuit on behalf of shareholders against Rivian Automotive, Inc. (NASDAQ: RIVN) and certain of its executives for securities violations. The complaint was brought in United States District Court for the Central District of California and is captioned Charles Larry Crews, Jr. v. Rivian Automotive, Inc., No. 2:22-cv-01524 (C.D. Cal.) and is brought on behalf of investors that incurred damages on their purchases in Rivian common stock pursuant to or traceable to Rivian’s Initial Public Offering (“IPO”) on November 10, 2021.

A class has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.

Investors who purchased Rivian shares pursuant or traceable to Rivian’s IPO on November 10, 2021 and who lost money are strongly encouraged to contact Block & Leviton attorneys at (617) 398-5600, via email at [email protected], or to visit our website for information on the case.

The deadline to seek appointment as lead plaintiff is May 6, 2022.

What is this all about?

Rivian is an electric vehicle company that in 2018 unveiled its first consumer EV’s, the R1T electric pickup truck, and the R1S electric SUV.

On November 10, 2021, Rivian offered 153 million shares to the public through an IPO at a price of $78.00 per share for total proceeds of $11.93 billion.

According to the Registration Statement, the “R1T and R1S introduce our brand to the world and will serve as our flagship vehicles as we continue to expand our offerings.”

Rivian’s focus on its reputation for transparency and devotion to its customers, along with Rivian’s R1T and R1S, including the large number of preorders and potential for increased demand were key selling points to IPO investors.

Unbeknownst to investors, however, the Registration Statement's representations were materially inaccurate, misleading, and/or incomplete because they failed to disclose, among other things, that the R1T and R1S were underpriced to such a degree that Rivian would have to raise prices shortly after the IPO and that these price increases would tarnish Rivian’s reputation as a trustworthy and transparent company and would put a significant number of the existing backlog of 55,400 preorders along with future preorders in jeopardy of cancellation.

As a result, the price of the Company's shares was artificially and materially inflated at the time of the Offering.

If you have purchased shares of Rivian stock, have questions about your legal rights, or possess information relevant to this matter, please contact Block & Leviton attorneys at (617) 398-5600, via email at [email protected], or visit our website. The deadline to seek appointment as lead plaintiff is May 6, 2022.

Please note, a case against the same parties was inadvertently filed in the Northern District of California, No. 3:22-cv-01433, on March 7, 2021, but was promptly dismissed without prejudice.

Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets. The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm’s lawyers have recovered billions of dollars for its clients.

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