Rivian Automotive has agreed to pay $250 million to settle an investor lawsuit alleging the electric vehicle maker misled shareholders about vehicle production costs and pricing before its November 2021 IPO. A federal judge in the Central District of California granted final approval on May 20, 2026, in Crews v. Rivian Automotive, Inc. (Case No. 2:22-cv-01524-JLS-E). The settlement class covers investors who bought Rivian Class A common stock between November 10, 2021 and March 10, 2022.{1SEC. Rivian Automotive Litigation Settlement Announcement} Rivian did not admit wrongdoing.
What Investors Alleged
Rivian priced its IPO at $78 per share on November 9, 2021.{2CNBC. Rivian Prices IPO at $78 a Share, Valuing Company at $66.5 Billion} Base prices for the R1T pickup and R1S SUV were listed at $69,000 and $72,000. On March 1, 2022, Rivian raised those prices by roughly 17% and 20%, and applied the increases to existing preorders. Cancellations followed, Rivian reversed the hikes for pre-March 1 orders within days, and the stock fell from $67.56 on February 28 to $42.43 by March 7 — a 37% drop.{3ClassAction.org. Rivian Misled Investors by Failing to Disclose Post-IPO Electric Vehicle Price Increases, Class Action Alleges}
The lawsuit argued Rivian knew before the IPO that its manufacturing costs exceeded the retail prices of its vehicles and that price hikes would be necessary, but described those cost and pricing risks in its registration statement as hypothetical future possibilities.{411th. Rivian Investor Settlement} Investors brought claims under Sections 11 and 12(a)(2) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, against Rivian, its officers and directors, and the 22 underwriters of the IPO.
Who Qualifies for a Payment
You are a class member if you purchased Rivian Class A common stock during the class period of November 10, 2021 through March 10, 2022.{1SEC. Rivian Automotive Litigation Settlement Announcement} Plaintiffs’ damages expert estimated that approximately 211.5 million shares purchased during that window may have been affected.{5Rivian Securities Litigation. Long-Form Notice of Settlement}
The estimated average recovery came to roughly $1.18 per eligible share before fees and expenses, and about $0.85 per share net after deductions. Actual payments vary based on when shares were bought and sold and how many valid claims are filed. Payments are distributed on a pro rata basis, and no payment is issued for claims calculating to less than $10.{6KTMC. Crews v. Rivian Automotive Securities Litigation Claim Form}
Claim Deadline and How to File
The claim filing deadline was April 20, 2026. Claims were administered by Verita Global, LLC, and could be filed online at RivianSecuritiesLitigation.com or by mail.{6KTMC. Crews v. Rivian Automotive Securities Litigation Claim Form} If you did not submit a claim by that date, you are not entitled to a share of the fund even if your purchases fell within the class period.
How the Settlement Came Together
The case was filed in March 2022, with Sweden’s Sjunde AP-Fonden (AP7) and James Stephen Muhl later appointed as lead plaintiffs. In July 2023, Judge Josephine L. Staton denied motions to dismiss from both Rivian and the underwriters, finding plaintiffs had adequately alleged the registration statement was misleading.{7A&O Shearman. Crews v. Rivian Automotive, Inc., Order Denying Motions to Dismiss}
The parties reached the $250 million agreement on October 23, 2025.{8PR Newswire. Kessler Topaz Meltzer and Check LLP Announces Proposed Settlement of Class Action Involving Purchasers of Rivian Automotive, Inc. Class A Common Stock} Of the total, $67 million came from directors’ and officers’ liability insurance and $183 million from Rivian’s own cash.{9Bloomberg. Rivian to Pay $250 Million to Settle Legal Suit Over Price Hikes} After a fairness hearing on May 15, 2026, the court approved the settlement, along with $60 million in attorneys’ fees (24% of the fund) and $6.46 million in litigation costs.{10Bloomberg Law. Rivian’s $250 Million IPO Investor Settlement Gets Court Sendoff}