Rivian Automotive (NASDAQ:RIVN) has agreed to pay $250 million to settle an investor lawsuit, seeking to move past the legal dispute without admitting any wrongdoing.
The announcement came on the same day Rivian said it would cut 4.5% of its workforce, marking its second round of layoffs since September.
The proposed settlement, which still requires court approval, will be funded through $67 million in directors’ and officers’ liability insurance and $183 million from cash on hand, the company said in a statement late Thursday.
“The company denies the allegations in the suit and maintains that this agreement to settle is not an admission of fault or wrongdoing. However, settling will enable Rivian to focus its resources on the launch of its mass market R2 vehicle in the first half of 2026.”
The lawsuit, filed in 2022, alleged that Rivian failed to disclose material information, including plans to raise prices on its debut vehicles, until after its November 2021 IPO, misleading investors who bought its Class A shares.
Rivian’s stock closed up 1.3% at $13.09 on Thursday. The shares are down 1.6% year-to-date and remain far below their post-IPO high of $172.