NEW YORK, NY / ACCESSWIRE / April 19, 2024 / Pomerantz LLP announces that a class action lawsuit has been filed against Rivian Automotive, Inc. ("Rivian" or the "Company") (NASDAQ:RIVN) and certain officers. The class action, filed in the United States District Court for the Central District of Califorina, and docketed under 24-cv-03269, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Rivian securities between March 1, 2023 and February 21, 2024, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased or otherwise acquired Rivian securities during the Class Period, you have until June 18, 2024, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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Rivian, together with its subsidiaries, designs, develops, manufactures, and sells electric vehicles and accessories. The Company sells its products directly to customers in the consumer and commercial markets.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Rivian had overstated demand for its products, as well as its ability to withstand negative, near-term macroeconomic impacts; (ii) accordingly, Rivian's business was experiencing reduced demand and increased customer cancellations as a result of, inter alia, high interest rates; (iii) as a result, Rivian's order bank had significantly deteriorated; (iv) all the foregoing was likely to, and did, negatively impact the Company's anticipated earnings and vehicle production targets for 2024; and (v) 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.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
SOURCE: Pomerantz LLP