06:24 AM EDT, 10/24/2025 (MT Newswires) -- Rivian Automotive ( RIVN ) said Thursday it agreed to pay $250 million to settle a 2022 class action lawsuit that accused the company of misleading investors about vehicle pricing during and after its initial public offering in 2021.

The lawsuit alleged Rivian concealed that its electric vehicles were underpriced at the IPO, leading to price increases in 2022 and a subsequent stock decline.

Rivian denied the allegations and said the settlement does not constitute an admission of wrongdoing.

Under the agreement, Rivian will fund the settlement through $67 million in directors' and officers' liability insurance and $183 million in cash.

The company said resolving the matter allows it to focus on launching its R2 vehicle in H1 2026.