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Summary: Rivian will pay $250M to settle lawsuit over R1 price hike Crunch

1. Rivian has agreed to pay $250 million to settle a shareholder lawsuit over price hikes on its R1 pickup truck and SUV in 2022, amid allegations of misleading statements in regulatory filings about the costs required to build the EVs.
2. Despite not admitting fault, Rivian plans to use insurance and cash reserves for the payment, which still needs a judge's approval. The settlement occurs as Rivian prepares to launch its cheaper second-generation EV, the R2 SUV, in 2026.
3. Rivian has faced difficulties with R1 sales, including tariffs and loss of the federal EV tax credit, and recently laid off over 600 employees as part of a restructuring with CEO RJ Scaringe taking on interim CMO duties.
Summary
Rivian agrees to pay $250M to settle shareholder lawsuit over 2022 price hikes on R1 pickup truck, SUV. Accusations include misleading statements in regulatory filings regarding EV build costs. Settlement not admitting fault, using insurance and cash reserves pending judge's approval. Launching
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ID: 68b55e62-2b6b-41fb-bbdb-27ef67daa229

Category ID: listed_summary

URL: https://techcrunch.com/2025/10/24/rivian-will-pay-250m-to-settle-lawsuit-over-r1-price-hike/#summary

Date: Oct. 25, 2025

Notes: 2025-10-25

Created: 2025/10/25 20:42

Updated: 2025/12/07 23:27

Last Read: 2025/10/26 13:58