Rivian Settles 2022 Securities Class Action For $250 Million
(RTTNews) - Rivian Automotive, Inc. (RIVN) announced it has agreed to settle the 2022 securities class action lawsuit filed in the U.S. District Court for the Central District of California - Crews v. Rivian Automotive, Inc. et al., Case No. 2:22-cv-01524-JLS-E.
The company emphasized that the settlement does not constitute an admission of wrongdoing, stating the decision allows Rivian to direct its focus and resources toward the planned 2026 launch of its mass-market R2 vehicle.
Under the proposed settlement, subject to court approval, Rivian will pay $250 million to resolve claims on behalf of investors who purchased Rivian Class A common stock between November 10, 2021, and March 10, 2022. The payment will be funded through $67 million in directors' and officers' liability insurance and $183 million in cash reserves.
Once approved, the settlement will fully resolve all claims against Rivian and the other defendants.
RIVN currently trades at $12.99, or 0.73% lower on the NasdaqGS.
