LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Carvana Co. (“Carvana” or the “Company”) (NYSE: CVNA) securities between May 6, 2020 and June 24, 2022, inclusive (the “Class Period”). Carvana investors have until October 3, 2022 to file a petition of the main plaintiff.
If you have suffered a loss on your Carvana investments or would like to inquire about possible claims to recover your loss under federal securities laws, you may submit your contact information at www.glancylaw.com/cases/carvana -co/. You may also contact Charles H. Linehan of GPM at 310-201-9150, toll-free at 888-773-9224, or by email at [email protected] to learn more about your rights.
On June 24, 2022, after market hours, Barrons published an article which alleged, among other things, that Carvana was “selling cars faster than it could register them to their new owners”, and had “issued several temporary license plates from the states where it has concessionaire, instead of quickly supplying permanent ones.”
On this news, Carvana stock fell $6.78, or 21.5%, over the next two trading days to close at $24.74 per share on June 28, 2022, hurting investors.
The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, the defendants failed to disclose to investors that: (1) Carvana faced serious ongoing documentation, registration, and title issues with many of its vehicles; (2) as a result, Carvana was issuing unusually frequent temporary plates; (3) as a result of the foregoing, Carvana violated laws and regulations in many existing markets; (4) as a result of the foregoing, Carvana risked its ability to continue operations and/or expand operations in existing markets; (5) as a result of the foregoing, Carvana was exposed to an increased risk of government investigation and action; (6) Carvana was in discussions with state and local authorities regarding the aforementioned business tactics and issues; (7) Carvana was facing pending and pending regulatory action including license suspensions, terminations and probation in several states and counties, including Arizona, Illinois, Pennsylvania, Michigan and North Carolina; and (8) as a result, defendants’ positive statements about the company’s business, operations and prospects were materially misleading and/or lacked reasonable basis at all relevant times.
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If you purchased or otherwise acquired securities of Carvana during the Class Period, you may bring an action before the Court no later than October 3, 2022 ask the Tribunal to appoint you as the principal plaintiff. To be a member of the Group, you do not have to perform any action at the moment; you can retain the services of a lawyer of your choice or take no action and remain an absent member of the Class. If you would like to know more about this action, or if you have any questions about this announcement or your rights or interests in respect of these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, toll free at 888-773-9224, by email at [email protected], or visit our website at www.glancylaw.com. If requesting by email, please include your mailing address, phone number and number of shares purchased.
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