Rivian agrees to pay $250 million to settle securities class action suit

Rivian Automotive Inc. (NASDAQ: RIVN) agreed to pay $250 million to settle a securities class action lawsuit filed in 2022 in the United States District Court for the Central District of California.

The settlement covers claims brought by purchasers of Rivian Class A common stock between November 10, 2021, and March 10, 2022. The agreement requires court approval before taking effect.

Rivian denied the allegations and stated the settlement does not constitute an admission of fault or wrongdoing. The company said resolving the litigation will allow it to focus resources on launching its R2 vehicle in the first half of 2026.

The electric vehicle manufacturer will fund the settlement through $67 million from directors' and officers' liability insurance and $183 million in cash. If approved by the court, all claims against Rivian and other defendants in the case would be resolved.

The lawsuit, titled Crews v. Rivian Automotive, Inc. et al., was filed as case number 2:22-cv-01524-JLS-E in the Central District of California.

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