RIVN: Rivian Settles IPO Class-Action Case While Trimming Staff By 4.5%

Rivian RIVN will pay $250 million to settle a 2022 class-action lawsuit over alleged IPO misstatements, according to a Thursday court filing. On the same day, the EV maker said it will cut roughly 600 positions, about 4.5% of its staff.

The lawsuit alleged Rivian underpriced its R1S SUV and R1T pickup during its $11.9 billion 2021 IPO, sparking steep price increases in early 2022. Rivian denies wrongdoing but says the settlement lets the company focus on the R2 launch.

The R2 SUV, starting at $45,000, is central to Rivian's bid to capture the mass-market EV segment in 2026. Analysts view its success as critical for the company's long-term viability.

The layoffs mark the third round in four months, highlighting pressure from declining demand after the federal $7,500 EV tax credit ended. Third-quarter deliveries climbed 32% to 13,201 units, but full-year guidance was trimmed to 41,50043,500 vehicles.

The cash is dwindling and the losses are accumulating thus Rivian has a massive 2026 on its hands. They are also in a race to profitably rise up the R2 to keep abreast with a competitive EV market.