NEW YORK, NY / ACCESSWIRE / January 5, 2025 / Pomerantz LLP is investigating claims on behalf of investors of Carvana Co. ("Carvana" or the "Company") (NYSE: CVNA). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.
The investigation concerns whether Carvana and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On January 2, 2025, Hindenburg Research ("Hindenburg") published a short report entitled "Carvana: A Father-Son Accounting Grift For The Ages," centering on Carvana's practice of loan sales as well as the business relationship between Chief Executive Officer Ernie Garcia III and his father, Ernest Garcia II, who is Carvana's largest shareholder. Specifically, Hindenburg says it uncovered $800 million in loan sales "to a suspected undisclosed related party, along with details on how accounting manipulation and lax underwriting have fueled temporary reported income growth - all while insiders cash out billions in stock."
In addition, Hindenburg alleges that an increase in borrower extensions at Carvana is being enabled by the Company's loan servicer, an affiliate of private car dealership DriveTime, which is run by Garcia II. According to Hindenburg, the "company seems to be avoiding reporting higher delinquencies by granting loan extensions instead."
On this news, Carvana's stock price fell sharply during intraday trading on January 3, 2025.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, London, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
SOURCE: Pomerantz LLP
View the original
press release on accesswire.com
