The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired Carvana Co. (“Carvana”) (NYSE: CVNA) publicly traded securities between May 6, 2020 through June 24, 2022, inclusive (the “Class Period”). Investors have until October 3, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Carvana is an e- commerce platform for buying and selling used cars in the United States.
On June 24, 2022, after market hours, Barron’s published an article entitled “Carvana Sought to Disrupt Auto Sales. It Delivered Undriveable Cars[,]” which detailed several issues with Carvana. On this news, the Company’s share price declined by $1.18 per share, or approximately 3.74%, from $31.52 per share to close at $30.34 per share on June 28, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Carvana faced serious, ongoing issues with documentation, registration, and title with many of its vehicles; (2) as a result, Carvana was issuing unusually frequent temporary plates; (3) as a result of the foregoing, Carvana was violating laws and regulations in many existing markets; (4) as a result of the foregoing, Carvana risked its ability to continue business and/or expand its business in existing markets; (5) as a result of the foregoing, Carvana was at an increased risk of governmental investigation and action; (6) Carvana was in discussion with state and local authorities regarding the above-stated business tactics and issues; (7) Carvana was facing imminent and ongoing regulatory actions including license suspensions, business cessation, and probation in several states and counties including in Arizona, Illinois, Pennsylvania, Michigan, and North Carolina; and (8) as a result, Defendants’ statements about Carvana’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.