Former Rivian Executive Sues EV Maker Alleging 'Toxic Bro Culture' And Gender Discrimination

Rivian Automotive Inc has been slapped with a lawsuit by a former employee for toxic work culture, Bloomberg News reported Thursday, citing the lawsuit shared by the executive’s attorneys.

What Happened:  Laura Schwab, who was vice president of sales and marketing at Rivian, has alleged she was “abruptly” fired after she complained about the company’s “toxic bro culture” and facing gender discrimination from a top executive.

The lawsuit says the electric vehicle maker violated the state’s labor code, tarnished Schwab’s reputation and caused emotional pain. 

The executive’s lawyers said the suit was filed Thursday in a California Superior Court in Orange County. The lawyers have also filed a statement of claims with the American Arbitration Association.

“Rivian’s unlawful conduct also cost Ms. Schwab millions of dollars in unvested equity on the eve of the company’s IPO,” Bloomberg reported, citing the lawsuit.

See Also: Ford-Backed Tesla Rival Rivian Looks To Raise $8.4B In IPO: What You Need To Know

In her lawsuit, Schwab alleges Rivian Chief Commercial Officer Jiten Behl “routinely excluded her from meetings” and made decisions about her team “with input from men on different teams” and dismissed her concerns regarding Rivian’s “misleading public statements and flawed business practices.”

Schwab said Rivian’s claim to deliver 1,000 electric vehicles by the end of 2021 was not achievable and that she had warned the company products were underpriced and needed refining.

Schwab, who would have completed a year at Rivian this month, was offered a $360,000 base salary, a 40% bonus, a $4,000 per month stipend, a $100,000 sign-on bonus, and $1.5 million in equity in the form of restricted stock units. 

Why It Matters: Rivian — which is backed by Amazon.com Inc AMZN and Ford Motor Co F—is planning to raise $8.4 billion in an initial public offering.
Rivian reported a net loss of $994 million for the first six months of 2021, compared with a $377 million loss a year ago. The electric vehicle maker expects to record a net loss of up to $1.28 billion in the quarter ended Sept. 30 due to increased costs related to the start of production of the upcoming R1T and R1S vehicle programs.

Price Action: Amazon shares closed 2.75% higher at $3,477 a share on Thursday.

See Also: Blue Origin Employees Say Jeff Bezos Company Has Toxic Culture, Safety Issue

Photo: Courtesy of Rivian