RIVN Stock Alert: Georgia Resident Hits Rivian With a Lawsuit

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Rivian (NASDAQ:RIVN) stock is in full focus after the electric vehicle (EV) company and two of its contractor companies received a lawsuit from a Georgia resident who lives near Rivian’s construction site of its future production facility. The resident and her family own property near the $5 billion plant and allege that runoff from the site has damaged streams and ponds, creating a muddy mess on her property.

The resident had the following to say:

“I do not have a problem with electric vehicles or economic development in appropriate places if done in a good way. However, Rivian and the contractors working on this project have shown disregard for the environment of our rural area, including our fields, forests, and streams.”

Here’s what else RIVN stock investors should know.

RIVN Stock: Rivian Receives Lawsuit From Georgia Resident

The lawsuit states that the damage began last October after Rivian’s contractor, Plateau Excavation, started work on clearing a 737-acre area of land for the construction site. According to the suit, a rainstorm resulted in mud spilling over from the site into Rawlings Branch. This ultimately resulted in mud landing on the resident’s property. Since Rawlings qualifies as “waters of the United States,” the resident believes Rivian and its contractors have violated the federal Clean Water Act.

Plateau acknowledged its mistake and reported a dirt discharge. This resulted in the Georgia Environmental Protection Division (EPD) issuing the contractor a notice of violation, although the contractor did not receive any fines. The situation may still be ongoing, as the lawsuit notes that mud continues to flow onto the resident’s property due to “heavy precipitation events.”

Meanwhile, Rivian is dealing with additional resident opposition for its Georgia facility. The state’s appeals court panel is currently weighing a decision on whether the $700 million Rivian received in local property tax breaks was justified. At the same time, residents living near the construction site have held rallies to protest against the tax break, with locals displaying “We Oppose Rivian” signs on lawns and business windows.

“They came in the way they did without communication and just said y’all are gonna accept it,” said an opposition leader. “It’s un-American as a citizen to take that.”

The appeals court panel is expected to make a decision before the end of June.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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