Rivian Investors’ Pricing Suit Proceeds Against EV Maker, Banks

Rivian Automotive Inc. and underwriters that conducted its initial public offering must continue to face shareholder claims that the company underestimated the costs of materials for its electric vehicles, a federal court in California ruled.

The investors, suing on behalf of a proposed class, adequately alleged that seven public statements were misleading, Judge Josephine L. Staton said for the US District Court for the Central District of California. They also adequately alleged the necessary level of intent on the part of the company’s senior executives, who are also defendants in the suit, Staton said.

Rivian’s CEO RJ Scaringe said in ...