Electric automobile start-up Rivian revealed on Thursday that it has actually settled a claim with a few of its financiers. The business continues to reject claims of making “materially false” declarations throughout its inial public offering however states it consented to pay $250 million to clear itself of interruptions as it concentrates on developing its next EV, the mass-market R2, which is due next year.

Rivian was very first taken legal action against by an investor in 2022 over claims that the start-up understood it would cost even more for it to construct each R1T electrical truck and R1S electrical SUV than the marketed $67,500 and $70,000 costs, respectively. A huge surprise cost boost would taint the nascent car manufacturer’s credibility, the claim declared, and might result in much of the nearly 56,000 pre-orders being canceled.

Simply a couple of months after its November 2021 IPO, the business had actually undoubtedly provided a substantial rate walking: $79,500 for the R1T and $84,500 for the R1S SUV. After a protest, the business stated it would honor the initial rate for its existing preorders. By that point, however, the damage was done, and more than a 3rd of the business’s worth was removed within a couple of days, the claim declared.