If you purchased or acquired securities investing in Rivian stock or options between August 12, 2022 and February 21, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/RIVN.
NEW YORK, July 18, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Rivian Automotive, Inc. (“Rivian” or the “Company”) (NASDAQ: RIVN) and reminds investors of the July 30, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Rivian had overstated demand for its EVs; (2) Rivian had concealed the negative effect inflation and higher interest rates were having on demand for its EVs; (3) the number of orders in Rivian’s order bank had decreased due to cancellations and other factors; (4) Rivian was failing to ramp up its production of EVs at the rate it claimed; (5) all the foregoing was likely to, and did, negatively impact the Company’s anticipated earnings and vehicle production targets for 2024; and (6) as a result, the Company’s public statements were materially false and misleading at all relevant times.
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 earnings before interest, taxes, depreciation, and amortization 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 the subsequent earnings call to discuss these results, Rivian's Chief Executive Officer, Defendant Robert J. Scaringe, revealed that "historically high interest rates . . . ha[ve] negatively impacted demand" and "[o]ur order bank has notably reduced overtime . . . along with the impact of cancellations due to both the macroenvironment and [various] customer factors" such as "delivery timing, location of order, monthly payments, and customer readiness."
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.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Rivian’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Rivian class action, go to www.faruqilaw.com/RIVN or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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