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
