GRABAR LAW OFFICE INVESTIGATES POTENTIAL CLAIMS AGAINST OFFICERS AND DIRECTORS OF CARVANA CO. (NYSE: CVNA)
Grabar Law Office is investigating potential claims against the officers and directors of Carvana Co. on behalf of current long-term stockholders.
According to recently filed class action complaints, Carvana and its officers and directors (“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 relating to 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 of its existing markets; (4) Carvana risked its ability to continue business and/or expand its business in its 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 its business practices; and (7) Carvana was facing regulatory actions including license suspensions, business cessation, and probation in several states and including in Arizona, Illinois, Pennsylvania, Michigan, and North Carolina.
On June 24, 2022, 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 reported, as a result of these business practices, “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 have continuously held Carvana shares since on or before May 6, 2020, you can seek corporate reforms, the return of funds back to company coffers, and potentially a court approved incentive award if appropriate.
If you would like to learn more about this matter at no cost to you, contact us at email@example.com or call 267-507-6085.