SAN FRANCISCO, CA/ACCESSWIRE/March 31, 2022/ The law firm Lieff Cabraser Heimann & Bernstein, LLP announces that a class action lawsuit has been filed on behalf of investors who purchased the common stock of Rivian Automotive, Inc. (“Rivian” or the “Company”) BANK issued in connection with its initial public offering (“IPO”) carried out on or around November 10, 2021.
If you purchased Rivian common stock issued in the IPO, you can ask the court to be named lead plaintiff no later than May 6, 2022. A lead plaintiff is a representative who acts on behalf of other class members to direct the litigation. Your share of any recovery in the actions will not be affected by your decision whether to seek appointment as lead plaintiff. You can retain Lieff Cabraser, or other attorneys, as your attorney in the action.
Rivian investors who wish to learn more about the litigation and how to request an appointment as lead plaintiff should click heretext or email [email protected], or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.
Background to the Rivian Securities Group Litigation
Rivian, based in Irvine, Calif., is an electric vehicle (“EV”) automaker and automotive technology company. The company’s first electric vehicles, 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 November 9, 2021, Rivian announced that as of November 31, October 2021, “approximately 55,400 R1T and R1S pre-orders 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 approximately 1,200 R1Ts and 25 R1S by the end of 2021 and projected that it would fill 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, raising 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 undervalued, causing Rivian to increase post-IPO price; (2) subsequent price increases would damage Rivian’s image of trust and transparency; (3) a significant number of the existing backlog of 55,400 pre-orders as well as future pre-orders would be threatened with cancellation; and (4) accordingly, Rivian’s business metrics and prospects would be weaker than those represented in the registration statement.
On March 1, 2022, Rivian announced that it was increasing the prices of its R1T pickup and R1S SUV by 17% and 20%, respectively, and that the new prices would apply to nearly all pre-orders. At that time, Rivian had only produced and sold around 1,000 vehicles. However, the number of pre-orders for the R1T and R1S had risen to around 71,000 as of December 15, 2021. At this news, Rivian’s stock price had fallen $5.65 per share, or 8.36%, from at its previous closing price of $67.56 per share. share on February 28, 2022, at $61.91 per share. Rivian shares fell further the next day, closing at $53.56 per share on March 2, 2022.
The next day, Rivian’s CEO sent a letter to customers, apologizing for breaking their trust and stating that the company would honor original prices for pre-orders placed before the price increase was announced. 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.
As of March 7, 2022, Rivian shares were trading at $42.43 per share, nearly half of their IPO price of $78.00.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville and Munich, is an internationally renowned law firm committed to advancing investor rights and promoting corporate responsibility. The National Law Review has recognized Lieff Cabraser as one of the nation’s top plaintiff law firms for fourteen years. Law360 selected Lieff Cabraser as one of the top 50 law firms nationwide for litigation, noting our firm’s “laser focus” and noting that our firm regularly finds itself “up against some of the law firms of the largest and strongest defenses in the world”. Reference dispute named Lieff Cabraser one of the “10 Best Plaintiff Companies in America”.
For more information on Lieff Cabraser and the company’s investor representation, please visit https://www.lieffcabraser.com/.
This press release may be considered attorney advertising in certain jurisdictions under applicable law and ethics rules.
Source/contact for media inquiries only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP
THE SOURCE: Lieff Cabraser Heimann & Bernstein
See the source version on accesswire.com: