Rivian to pay $250 million to settle investor lawsuit
Rivian, the electric vehicle startup, has agreed to pay $250 million to settle a lawsuit claiming it misled investors about the true costs of making its R1 trucks and SUVs during its 2021 IPO.
Investors said they weren't told that building these EVs actually cost more than Rivian was selling them for, which led to a surprise price hike in March 2022, falling stock prices, and financial losses for shareholders.
Settlement still needs a judge's approval
The $250 million payout still needs a judge's approval.
Rivian will cover it using $67 million from insurance and $183 million from its own cash reserves, which totaled $4.8 billion as of June 2025.
The settlement is for people who bought Rivian shares between November 2021 and March 2022.
Rivian raised prices by nearly 20% in 2022
After launching its R1T pickup and R1S SUV, Rivian bumped up prices by nearly 20% in 2022 due to rising costs, but quickly backtracked for early buyers after backlash.
With sales slowing, Rivian is now betting on its more affordable R2 SUV, aiming for a 2026 launch and planning to build up to 150,000 units a year at its Illinois plant.
Rivian laid off over 600 employees
Rivian is also feeling the heat from tariffs and losing federal EV tax credits.
In October 2025, it laid off over 600 employees as part of a company reset.
CEO RJ Scaringe has even stepped in to lead marketing for the R2, and the company is prepping a new factory in Georgia to produce its next-gen EVs.