Following a string of workforce cuts, disappointing earnings calls and stock market slumps in the past year, California electric vehicle (EV) manufacturer Rivian faces a new securities class action alleging that it defrauded investors.
The complaint, filed on Friday in the Central District of California, claims that Rivian made “materially false and misleading statements” between the period of August 12, 2022 to February 21, 2024. It said that Rivian periodically cited “strong demand” signaled by its backlog of EV preorders and planned production ramp-ups despite never having turned a profit since its founding in 2009. Rivian CEO and founder Robert J. Scaringe and Chief Financial Officer Claire McDonough are named as defendants.
