Rivian should face lawsuit claiming it defrauded IPO traders over car costs

BE desk

In her July 3 resolution, Staton known as the alleged upper prices a “major obstacle to profitability unique to Rivian,” now not simply a “garden-variety” infection.

“The inference that Rivian senior executives knew that the (bill of materials) cost for each R1 EV exceeded its retail price by approximately $40,000 leading up to the IPO is far more plausible than the inference that those executives were in the dark about the issue,” Staton added.

Rivian spokesman Harry Porter declined to remark, announcing Rivian does now not speak about pending litigation. Legal professionals for Swedish pension treasure Sjunde AP-Fonden, the top plaintiff within the proposed elegance motion, didn’t instantly reply to calls for remark.

Staton additionally refused to brush aside claims towards the IPO’s top underwriters Goldman Sachs, JPMorgan Chase and Morgan Stanley.

Subsidized by way of Amazon.com, Rivian went population at $78.00 in step with proportion on Nov. 10, 2021, elevating about $12 billion in that moment’s greatest IPO.

The lawsuit covers shareholders from that year to March 10, 2022.

In morning buying and selling, Rivian stocks have been up 10 p.c at $23.80 at the Nasdaq.

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