Rivian is an electric vehicle company that in 2018 unveiled its first consumer EV’s, the R1T electric pickup truck, and the R1S electric SUV.
On November 10, 2021, Rivian offered 153 million shares to the public through an IPO at a price of $78.00 per share for total proceeds of $11.93 billion.
According to the Registration Statement, the “R1T and R1S introduce our brand to the world and will serve as our flagship vehicles as we continue to expand our offerings.”
Rivian’s focus on its reputation for transparency and devotion to its customers, along with Rivian’s R1T and R1S, including the large number of preorders and potential for increased demand were key selling points to IPO investors.
Unbeknownst to investors, however, the Registration Statement's representations were materially inaccurate, misleading, and/or incomplete because they failed to disclose, among other things, that the R1T and R1S were underpriced to such a degree that Rivian would have to raise prices shortly after the IPO and that these price increases would tarnish Rivian’s reputation as a trustworthy and transparent company and would put a significant number of the existing backlog of 55,400 preorders along with future preorders in jeopardy of cancellation.
As a result, the price of the Company's shares was artificially and materially inflated at the time of the Offering.
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