NEWTOWN, Pa., Jan. 3, 2025 /PRNewswire/ -- Edelson Lechtzin LLP is investigating potential violations of the federal securities laws involving Carvana Co. (NYSE: CVNA) resulting from allegations of providing potentially misleading business information to the investing public.
If you have non-public information that could assist in the Carvana Investigation or if you are a Carvana investor who suffered a loss and would like to learn more, you can provide your information HERE.
You can also contact attorney Eric Lechtzin of Edelson Lechtzin LLP by calling 844-563-5550 ext. 1 or via e-mail at elechtzin@edelson-law.com.
THE COMPANY: Carvana Co. is an online retailer specializing in used vehicles.
THE ALLEGED WRONGDOING: On January 2, 2025, Hindenburg Research issued a report titled "Carvana: A Father-Son Accounting Grift for the Ages," accusing Carvana of engaging in deceptive financial practices, including questionable accounting and undisclosed loans to a related party amounting to $800 million. The report highlights risks like lax loan underwriting practices, falling vehicle prices, and rising subprime loan delinquencies.
Between August 2020 and August 2021, Garcia III and his father, Ernest Garcia II, sold $3.6 billion worth of Carvana stock. According to the report, Carvana's stock rose 284% in 2024 and is "exorbitantly valued." With Carvana shares surging, the CEO's father sold another $1.4 billion of CVNA stock. Meanwhile, the company faces increasing credit losses and a 20% drop in its customer base since 2021. With nearly 1,000 complaints and an abysmal 1.1-star rating from the Better Business Bureau, concerns about Carvana's viability are growing.
ABOUT EDELSON LECHTZIN LLP: Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and catastrophic injuries.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so counsel does not represent you unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing now. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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SOURCE Edelson Lechtzin LLP
