Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Rivian Automotive, Inc. (NasdaqGS: RIVN).
On November 15, 2021, the Company concluded its Initial Public Offering (“IPO”) raising gross proceeds of over $13.7 billion (before underwriting discounts, commissions, and estimated expenses). Then, on March 1, 2022, the Company announced steep price increases for its electric vehicles of 17%-20% that it blamed on “inflationary pressure on the cost of supplier components and raw materials across the world,” which applied not only to future orders but also to nearly all existing pre-orders in process (excluding only those already in the final stages). Soon after, the Company reversed the price increase for preorders prior to March 1, and also disclosed a projected EBITDA of negative $4.75 billion for fiscal year 2022, due to its intent to “minimize price increases to customers in the near term.”
However, the Company was subsequently sued in a securities class action lawsuit alleging that it knew long before the IPO that its electric vehicle products were underpriced, and would generate significant negative gross profits per vehicle, to such a degree that it would have to raise prices shortly after the IPO. As a result, the price of its shares was artificially and materially inflated at the time of the Offering and declined when the truth was subsequently revealed, damaging investors. Recently, the court presiding over that case denied the Company’s motion to dismiss, allowing the case to move forward.
KSF’s investigation is focusing on whether Rivian’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Rivian shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-938-0905 or email KSF Managing Partner Lewis Kahn ([email protected]), or visit https://www.ksfcounsel.com/cases/nasdaqgs-rivn/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, California, Louisiana and New Jersey.
To learn more about KSF, you may visit ksfcounsel.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230721253411/en/
