Case Summary

Rivian Automotive

NASDAQ: RIVN

Case Details

  • Dietel v. Rivian Automotive, Inc. et al.
  • Class Period: March 1, 2023 - February 21, 2024
  • Date Filed:April 19, 2024
  • Jurisdiction:U.S. District Court, Central District of California
  • Docket Number: 2:24-cv-03269
  • Lead Plaintiff Deadline: June 18, 2024
Days Left to
Seek Plaintiff
24

Overview

A class action lawsuit has been filed against Rivian Automotive, Inc. (“Rivian” or the “Company”) (NASDAQ: RIVN) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Rivian lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Rivian securities between March 1, 2023, and February 21, 2024, both dates inclusive, (the “Class Period”), and investors have until June 18, 2024 to seek appointment as lead plaintiff of the Rivian class action lawsuit.

Rivian is an automotive manufacturer, which is engaged in developing and building category-defining electric vehicles (EVs) and accessories.

The lawsuit alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) Rivian had overstated demand for its products, as well as its ability to withstand negative, near-term macroeconomic impacts; (2) accordingly, Rivian’s business was experiencing reduced demand and increased customer cancellations as a result of, inter alia, high interest rates; (3) as a result, Rivian’s order bank had significantly deteriorated; (4) all the foregoing was likely to, and did, negatively impact the Company’s anticipated earnings and vehicle production targets for 2024; and (5) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On August 8, 2023, after the market closed, the Company reported its financial results for the first quarter of fiscal year 2024, which ended on June 30, 2023.  While the Company exceeded its quarterly revenue and adjusted EBITDA guidance for the first quarter, the Company provided disappointing guidance for the second quarter of fiscal year 2024 and slashed its guidance for the full fiscal year 2024.  On this news, the price of Rivian common stock declined $7.49 per share, or nearly 23%, from a close of $32.79 per share on August 8, 2023, to close at $25.30 per share on August 9, 2023.

On February 21, 2024, Rivian announced its fourth quarter and full year 2023 financial results.  Among other items, Rivian announced that it expected to produce 57,000 vehicles in 2024, significantly lower than analyst expectations of 80,000 vehicles.  The Company further forecasted an adjusted EBITDA loss of $2.7 billion for full year 2024, compared to analyst expectations of $2.59 billion, and announced plans to cut 10% of salaried staff, citing economic uncertainty.  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.

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If you purchased or otherwise acquired Rivian securities between March 1, 2023 and February 21, 2024, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

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