Arrival Settled With Investors Over EV Hype and Microfactory Claims – Here’s What You Need to Know

Court: E.D. New York

Case: 1:22-cv-00172

Arrival ARVLF has reached a settlement with investors who accused the company of hid information about issues with revolutionary “microfactory” model, and financial projections in the lead-up to its SPAC merger. The agreement, finalized in March 2025, aims to close the chapter on a dramatic collapse that saw the company’s stock plummet by over 95%.

What Really Happened With Arrival’s EV Rollout

In 2020, Arrival entered the EV race with bold promises, announcing a plan to transform auto manufacturing through small, flexible microfactories powered by autonomous robots and innovative materials. It claimed to be production-ready, with high-margin projections and vehicles like electric vans and buses poised to hit the road.

However, in November 2021, Arrival slashed its 2022 production guidance from 10,000 vehicles to just 400 and revealed unexpected cost overruns. The stock immediately tanked, dropping nearly 28%. Another 20% drop came days later after more capital raise disclosures. By the end of 2022, Arrival confirmed it had built only 20 vehicles—and brought in zero revenue.

Investors Push Back—and Get Results

Behind the scenes, Arrival’s much-touted tech was struggling. Its autonomous robots reportedly failed to complete basic manufacturing tasks, molds were incomplete or faulty, and key infrastructure was missing. Still, the company continued assuring investors that production was on track.

By early 2023, investors filed a lawsuit alleging that Arrival misrepresented its readiness, technology, and revenue expectations, painting a misleading picture of its operations and future.

The Deal That Finally Closed the Chapter

Now, after two years of legal battles, Arrival has agreed to settle the claims. The settlement—finalized in March 2025—offers some relief to investors who were hit hardest by the company’s rapid downfall. While specific terms are still being analyzed by the court for final approval, eligible shareholders can now file claims to recover losses. You can find the latest updates and submit your claim here.