Rivian Automotive Reaches $250 Mln Settlement In Securities Class Action

(RTTNews) - Rivian Automotive Inc. (RIVN) announced that it has reached an agreement to settle the previously disclosed 2022 securities class action litigation. The case, titled Crews v. Rivian Automotive, Inc. et al., is currently pending in the United States District Court for the Central District of California.

While Rivian continues to deny the allegations and maintains that the settlement does not constitute an admission of fault or wrongdoing, the company believes that resolving the matter will allow it to better focus its resources on strategic priorities—most notably, the upcoming launch of its mass-market R2 vehicle, scheduled for the first half of 2026.

Under the terms of the proposed settlement, Rivian will pay $250 million to resolve claims brought on behalf of purchasers of its Class A common stock between November 10, 2021, and March 10, 2022. The settlement is subject to court approval.

If approved, the settlement will resolve all claims against Rivian and other defendants in the case. The payment will be funded through a combination of $67 million from directors' and officers' liability insurance and $183 million from Rivian's cash reserves.