Rivian has agreed to pay $250 million to settle a 2022 shareholder class-action lawsuit that claimed the electric vehicle maker misled investors about its vehicle prices during its 2021 initial public offering (IPO), according to a court filing on Thursday.

The lawsuit alleged Rivian hid the fact that it had underpriced its R1S SUVs and R1T pickups, which later led to unpopular price hikes.

Following the price increases in March 2022—R1S to $84,500 from $70,000 and R1T to $79,500 from $67,500—Rivian's share price fell 39% over ten days, stirring complaints from customers online, Reuters reported.

"The company denies the allegations in the suit and maintains that this agreement to settle is not an admission of fault or wrongdoing," Rivian said in a statement.

The settlement allo

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