SAN FRANCISCO, Jan. 13, 2025 (GLOBE NEWSWIRE) — Carvana Co. (NYSE:CVNA) Shares plunged nearly 13% in the two days ended Jan. 3, 2025, as the market released a damning report Hindenburg research on January 2, 2025.

Hagens Berman has launched an investigation and is urging investors in Carvana shares who suffered significant losses to file their losses now.

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Contact the company now: [email protected]
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Carvana Co. (CVNA) Investigation:

The investigation focuses on the accuracy of Carvana’s related party transaction disclosures in accordance with applicable accounting standards and SEC rules and regulations.

On January 2, 2025, Hindenburg researchA well-known forensic financial research firm, released a concise report entitled “Carvana: A Father-Son Accounting Dispute for the Ages.” This comprehensive document is the result of a four-month meticulous investigation that included 49 interviews with industry experts, former employees, competitors and related parties Carvana included.

The report highlights a key finding: “(d)Although bankruptcy risks loomed in 2022 and 2023, Carvana’s stock rose 284% in 2024, with investors believing the company’s worst days were behind it (… .) (but) Carvana’s turnaround is a mirage.” .”

key to Hindenburgs Under scrutiny is Carvana’s purchase commitment agreement with Ally Financial, through which the company sold $3.6 billion in vehicle loans in 2023 (approximately 60% of Carvana’s total originations). Hindenburgs The analysis shows a worrying trend: As of September 30, 2024, Carvana’s sales to Ally had declined significantly and were as follows:

1. “A new, unnamed buyer has quietly emerged just when Carvana needed him(;)”
2. “(i)n the last two quarters, Carvana sold $800 million in loans to ‘an independent third party (;)’.”
3. “The mystery buyer accounted for 18.3% and 16.3% of total credit sales in the second and third quarters of 2024, respectively(;)” and
4. “(L)ien filings show the buyer is likely to be a trust affiliated with Cerberus Capital, where Carvana director Dan Quayle is chairman of Global Investments, suggesting the new buyer is opposed “The company’s claims involve an unnamed related party.”

The release of the report triggered an immediate market reaction, causing Carvana’s stock price to plunge $25.84, or 12.7%, in two trading sessions ending January 3, 2025.

“We are focused on whether Carvana may have misled investors in 2024, if, how Hindenburg alleges the company shifted vehicle loans to a related party after Ally apparently scaled back its purchases,” said Reed Kathrein, the Hagens Berman partner who led the investigation.

If you have invested in Carvana and have suffered significant losses or have knowledge that could assist the company’s investigation, report your losses now »

If you would like more information and answers to frequently asked questions about Carvana research, read more »

Whistleblowers: Anyone with non-public information about Carvana should consider their options to assist in the investigation or utilize the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards totaling up to 30 percent of any successful recovery by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global complex plaintiffs’ rights law firm with a focus on corporate responsibility. The firm has a robust practice representing investors, whistleblowers, employees, consumers and others in cases that achieve real results for those harmed by corporate negligence and other wrongdoings. The Hagens Berman team has secured more than $2.9 billion in this area of ​​law. You can find out more about the law firm and its successes at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact:
Reed Kathrein, 844-916-0895