LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), announces that it has filed a class action lawsuit in the United States District Court for the District of New Jersey, captioned Rodeo Collection LTD v. Carvana Co., et al., Case No. 2:22-cv-05778, on behalf of persons and entities that 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”). Plaintiff pursues claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby notified that they have until October 3, 2022 to move the Court to serve as lead plaintiff in this action.
If you suffered a loss on your Carvana investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/carvana-co/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at email@example.com or visit our website at www.glancylaw.com to learn more about your rights.
On August 10, 2021, media reported that Carvana’s dealer license was suspended for the Raleigh, North Carolina location for six months because “Carvana failed to deliver titles to the DMV, sold motor vehicles without a state inspection, and issued out-of-state temporary tags and plates for vehicles sold to customers in North Carolina.”
On this news, the Company’s stock fell $9.40, or 2.5%, to close at $360.70 per share on August 11, 2021, on unusually heavy trading volume.
Then, on October 22, 2021, before the market opened, The Wall Street Journal published an article entitled “Carvana Faces Government Scrutiny and Fines Following Consumer Complaints,” revealing that “[a]t least four states have disciplined Carvana or are investigating the company for violating vehicle-sales rules.”
On this news, the Company’s stock fell $9.53, or 3.15%, over two consecutive trading sessions to close at $292.23 per share on October 25, 2021, on unusually heavy trading volume.
Then, on June 24, 2022, after the market closed, Barron’s published an article entitled “Carvana Sought to Disrupt Auto Sales. It Delivered Undriveable Cars[,]” which stated 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.” By early 2021, Carvana increased staffing and “would use its dealer licenses across the country to issue temporary license plates from multiple states to customers” to deal with the delayed registrations. Moreover, “Carvana’s sense of urgency surrounding the title-transfer issues may be most apparent in its formation of the undriveable-car task force in May,” which reviewed a “‘giant spreadsheet’ of cars . . . that Carvana had been keeping on the road with temporary plates that were now expiring . . . .”
On this news, the Company’s stock fell $6.78, or 21%, over two consecutive trading sessions to close at $24.74 per share on June 28, 2022, on unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Carvana faced ongoing issues with documentation, registration, and title for many of its vehicles across the country; (2) that, as a result, Carvana was issuing frequent temporary plates; (3) that the suspension of Carvana’s license in North Carolina was not a “relatively unusual” action and, in fact, the Company was under investigation by many states for violating laws and regulations regarding proper documentation and inspections; (4) that, as a result of the foregoing, there was a substantial risk to Carvana’s ability to continue business and/or expand its business in existing markets; (5) that Carvana was facing imminent regulatory action including license suspension in several states; (6) that, as a result of the foregoing, Carvana faced increased oversight in certain states, including Illinois; and (7) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Carvana securities during the Class Period, you may move the Court no later than October 3, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to 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 to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.