SAN FRANCISCO, CA / ACCESSWIRE / September 28, 2022 / Hagens Berman urges Carvana Co. (NYSE:CVNA) investors who suffered significant losses to submit your losses now.
Carvana Co. (NYSE:CVNA) Securities Fraud Class Action:
The action challenges Defendants' statements touting Carvana's growth in retail units sold purportedly driven by the Company's increased penetration in existing markets.
The complaint alleges Defendants' statements were misleading by omitting to disclose that Carvana: (1) faced serious ongoing issues with documentation, registration, and title with many of its vehicles; (2) was issuing unusually frequent temporary license plates; (3) was violating laws and regulations in many of its existing markets; (4) risked its ability to continue business and/or expand its business in existing markets; (5) was at increased risk of governmental investigation and action; (6) was in discussion with state and local authorities regarding the above-stated business tactics and issues; and, (7) was facing imminent and ongoing regulatory actions including license suspensions, business cessation, and probation in several states.
On June 24, 2022, Barron's published an article revealing that "[i]n its haste to seize market share from competitors, Carvana was selling cars faster than it could get them registered to their new owners," Carvana has sold cars before it had title and, at one point, Carvana scrambled to respond to these problems by forming the "undriveable-car task force" unit. Barron's also observed that Carvana is facing scrutiny from several state motor vehicle agencies over its failure to meet vehicle registration deadlines, the use of out-of-state permits by customers, and other compliance issues.
This news sent the price of Carvana shares sharply lower.
"We're focused on investor losses and proving Carvana concealed its rampant violation of documentation regulations," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Carvana and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Carvana should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
# # #
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP