Rivian Faces Gender Discrimination Lawsuit - Allegations of 'Bro Culture'

Rivian Faces Lawsuit Alleging Gender Discrimination

Rivian, the electric vehicle manufacturer currently preparing for its initial public offering (IPO), is facing legal action. A former vice president of sales and marketing has filed a lawsuit alleging gender discrimination.

Details of the Lawsuit

Laura Schwab, the former executive, previously held positions at prominent automotive companies including Jaguar Land Rover and Aston Martin. She joined Rivian in November 2020 and was subsequently terminated after reporting concerns about gender discrimination to the company's human resources department.

The legal complaint was submitted on Thursday in California Superior Court, located in Orange County.

Rivian's Response

Due to restrictions related to the upcoming public offering, a Rivian spokesperson informed TechCrunch that the company is currently unable to provide a statement on the matter.

Allegations of a "Toxic Bro Culture"

Ms. Schwab has also presented her claims to the American Arbitration Association (AAA) and detailed them in a blog post on Medium. The AAA statement, reviewed by TechCrunch, characterizes the company’s upper management as fostering a “toxic bro culture.”

According to the statement, Schwab’s input was frequently disregarded by her superiors when she attempted to address issues. She was consistently excluded from meetings attended by male colleagues, and decisions impacting her team were made without her participation.

Furthermore, the AAA statement indicates that her reservations regarding Rivian’s “misleading public statements and flawed business practices” were dismissed.

Termination Following Complaint

The statement alleges that Ms. Schwab was abruptly dismissed from her position after raising concerns with human resources about “the boys’ club culture and gender discrimination” originating from a C-level executive.

In a blog post excerpt, Schwab detailed her experiences.

Timing and IPO Details

This lawsuit emerges as Rivian, backed by Amazon, prepares for a highly anticipated public debut. Recent filings reveal the company’s intention to secure up to $8.4 billion through its IPO.

The plan involves offering 135 million shares, priced between $57 and $62 each. Underwriters possess an option to purchase an additional 20.25 million shares, potentially increasing the total raised to $9.6 billion.

Valuation Estimates

Considering the number of outstanding shares, Rivian’s market valuation is estimated to be approximately $53 billion. Including employee stock options and restricted shares, the valuation could reach as high as $60 billion.

The company officially filed for its public listing in the United States on October 1st.