The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Carvana Co. (NYSE: CVNA) who purchased shares between May 6, 2020 and June 24, 2022. The action, which was filed in the United States District Court for the District of New Jersey, alleges that the Company violated federal securities laws.
In particular, the Carvana lawsuit alleges that (1) CVNA faced serious, ongoing issues with documentation, registration, and title with many of its vehicles; (2) as a result, CVNA was issuing unusually frequent temporary plates; (3) as a result of the foregoing, CVNA was violating laws and regulations in many existing markets; (4) as a result of the foregoing, CVNA risked its ability to continue business and/or expand its business in existing markets; (5) as a result of the foregoing, CVNA was at an increased risk of governmental investigation and action; (6) CVNA was in discussion with state and local authorities regarding the above-stated business tactics and issues; (7) CVNA 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 CVNA’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Shareholders have until October 3, 2022 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.