A class action lawsuit has been filed against Rivian Automotive, Inc. in the United States District Court for the Central District of California. The lawsuit alleges that Rivian made false and misleading statements regarding its business and financial prospects between March 1, 2023, and February 21, 2024.
The lawsuit alleges that Rivian overstated demand for its products and its ability to withstand negative macroeconomic impacts. As a result, Rivian’s business experienced reduced demand and increased customer cancellations due to high interest rates. The lawsuit further alleges that Rivian’s order bank significantly deteriorated and that the company’s earnings and vehicle production targets for 2024 were likely to be negatively impacted.
On February 21, 2024, Rivian announced its fourth-quarter and full-year 2023 financial results. The company announced that it expected to produce 57,000 vehicles in 2024, significantly lower than analyst expectations of 80,000 vehicles. Rivian also forecasted an adjusted earnings loss for full year 2024 and announced plans to cut 10% of salaried staff.
On this news, Rivian’s stock price fell $3.94 per share, or 25.6%, to close at $11.45 per share on February 22, 2024. Investors who purchased Rivian shares during the class period and suffered losses may be eligible to participate in the lawsuit.
