SAN FRANCISCO, CA / ACCESSWIRE / March 31, 2022 / The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased the common stock of Rivian Automotive, Inc. ("Rivian" or the "Company") (NASDAQ:RIVN) issued in connection with its Initial Public Offering ("IPO") conducted on or about November 10, 2021.
If you purchased Rivian common stock issued in connection with the IPO, you may move the Court for appointment as lead plaintiff by no later than May 6, 2022. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Rivian investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here, text or email [email protected], or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.
Background on the Rivian Securities Class Litigation
Rivian, based in Irvine, California, is an electric vehicle ("EV") automaker and automotive technology company. The Company's first EVs, announced in 2018, are the R1T electric pickup truck and the R1S electric SUV. Sales of the R1T began in September 2021, while sales of the R1S were scheduled to begin in December 2021. In a registration statement filed with the Securities Exchange Commission and declared effective on November 9, 2021, Rivian announced that as of October 31, 2021, "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, Rivian aimed to manufacture about 1,200 R1Ts and 25 R1Ss by the end of 2021 and forecasted that it would fulfill the backlog of 55,400 vehicles by the end of 2023. On November 10, 2021, Rivian launched its IPO, offering 153 million shares of its stock at a price of $78.00 per share, generating total proceeds of $11.93 billion.
The action alleges that the registration statement Rivian filed in connection with the IPO failed to disclose that: (1) Rivian's R1T and R1S vehicles were underpriced, requiring Rivian to raise prices after the IPO; (2) subsequent price increases would damage Rivian's image of trustworthiness and transparency; (3) a significant number of the existing backlog of 55,400 preorders along with future preorders would be placed in jeopardy of cancellation; and (4) as a result, Rivian's business metrics and prospects would be weaker than represented in the registration statement.
On March 1, 2022, Rivian announced that it was raising the prices of its R1T pickup and R1S SUV by 17 percent and 20 percent, respectively, and that the new prices would apply to nearly all preorders. At that time, Rivian had only produced and sold roughly 1,000 vehicles. However, the number of preorders for the R1T and R1S had grown to approximately 71,000 as of December 15, 2021. On this news, the price of Rivian's shares had fallen $5.65 per share, or 8.36%, from its previous closing price of $67.56 per share on February 28, 2022, to $61.91 per share. Rivian shares plummeted further the following day, closing at $53.56 per share on March 2, 2022.
The following day, Rivian's CEO issued a letter to customers, apologizing for breaking their trust and stating that the Company would honor original prices for preorders placed prior to the price increase announcement. On this news, Rivian's stock fell an additional $2.65 per share, or 4.95%, from its previous closing price of $53.56 per share on March 2, 2022, to $50.91 per share.
By March 7, 2022, Rivian shares were trading at $42.43 per share, almost half of their $78.00 IPO price.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. The National Law Journal has recognized Lieff Cabraser as one of the nation's top plaintiffs' law firms for fourteen years. Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm's "laser focus" and noting that our firm routinely finds itself "facing off against some of the largest and strongest defense law firms in the world." Benchmark Litigation has named Lieff Cabraser one of the "Top 10 Plaintiffs' Firms in America."
For more information about Lieff Cabraser and the firm's representation of investors, please visit https://www.lieffcabraser.com/.
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Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP
SOURCE: Lieff Cabraser Heimann & Bernstein