Rivian (RIVN.US) pays $250 million to settle investor lawsuit amid another round of layoffs, claiming no wrongdoing.

Rivian (RIVN.US) has agreed to pay $250 million to settle an investor lawsuit, attempting to end the legal dispute without admitting any wrongdoing. On the same day of the announcement, Rivian also stated that it will be cutting 4.5% of its workforce, marking the second round of layoffs since September of last year. The lawsuit, filed in 2022, alleges that Rivian failed to disclose key information, including its plans to increase the price of its first production vehicle before its initial public offering (IPO), leading to misleading investors who bought Class A common stock in the November 2021 IPO. Data shows that Rivian's stock price rose 1.3% on Thursday, closing at $13.09, significantly lower than its high point of $172 after the IPO. In a statement on Thursday evening, Rivian stated that the proposed settlement agreement, still subject to court approval, will be funded by $67 million in director and executive liability insurance, as well as $183 million in cash. The statement reads: "The Company denies the allegations in the lawsuit and maintains that the settlement agreement does not represent an acknowledgment of fault or misconduct. However, reaching a settlement will allow Rivian to focus its resources on its mass-market R2 model, planned for release in the first half of 2026."