CARVANA CO. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired Carvana Co. (“Carvana” or the “Company”) (NYSE: CVNA) securities between May 6, 2020 and June 24, 2022, inclusive. The lawsuit seeks to recover Carvana shareholders’ investment losses.
If you purchased securities in Carvana Co. between May 6, 2020 and June 24, 2022, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
Carvana purports to be, along with its subsidiaries, an e-commerce platform for buying and selling used cars in the United States.
Plaintiff alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants allegedly made false and/or misleading statements and/or failed to disclose that: (1) Carvana faced serious, ongoing issues with documentation, registration, and title with many of its vehicles; (2) as a result, Carvana was issuing unusually frequent temporary plates; (3) Carvana was violating laws and regulations in many existing markets; (4) Carvana risked its ability to continue business and/or expand its business in existing markets; (5) Carvana was at an increased risk of governmental investigation and action; (6) Carvana was in discussion with state and local authorities regarding the above-stated business tactics and issues; and (7) Carvana was facing imminent and ongoing regulatory actions including license suspensions, business cessation, and probation in several states and counties including in Arizona, Illinois, Pennsylvania, Michigan, and North Carolina.
On June 24, 2022, after market hours, Barron’s published an article entitled “Carvana Sought to Disrupt Auto Sales. It Delivered Undriveable Cars”, which detailed several issues with Carvana. Among other things, the article alleged that the Company engaged in the practice of selling cars “before it had title to the vehicles, an action that is illegal in many states where the company does business.”
As a result, “state regulators across the U.S. have been subjecting the company to suspensions or increased oversight over registration delays and its practice of issuing multiple temporary license plates from states where it has dealer’s licenses, instead of promptly providing permanent ones.”
On this news, the Company’s stock price fell $6.78 per share over the next two trading days to close at $24.74 per share on June 28, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than October 3, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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