The lawsuit got here after Irvine, Calif.-based Rivian sparked a buyer backlash on March 1 by elevating the R1S’s worth to $84,500 from $70,000, and the R1T’s worth to about $79,500 from $67,500.
Rivian backtracked two days later, saying preorders as of March 1 wouldn’t face the upper costs, and prospects who canceled orders might reinstate them on the unique costs. Learn full story
The Amazon.com-backed firm went public at $78.00 per share, elevating about $12 billion on the planet’s largest IPO of 2021. Its shares closed Monday at $42.43, after dropping 37 p.c of their worth within the prior 5 buying and selling days.
Rivian didn’t instantly reply on Tuesday to a request for remark. A lawyer for Crews didn’t instantly reply to an identical request.
In a March three letter to prospects, Scaringe stated inflationary pressures and better element prices led to the worth will increase.
“It was unsuitable and we broke your belief in Rivian,” Scaringe wrote.
The case is Crews v Rivian Automotive Inc et al, U.S. District Courtroom, Northern District of California, No. 22-01433.