SAN DIEGO, August 5, 2022 /PRNewswire/ — The law firm of Robbins Geller Rudmann & Dowd LLP announces that buyers or acquirers of Carvana Co. (NYSE: CVNA) have traded securities between May 6, 2020 and June 24, 2022the two dates included (the “Class Period”) have until October 3, 2022 to seek appointment as lead applicant in the carvana class action. Subtitle Brent vs. Carvana Co.No. 22-cv-04870 (DNJ), the carvana The class action accuses Carvana and some of its top executives of violating the Securities Exchange Act of 1934.
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CASE ALLEGATIONS: Carvana provides an e-commerce platform for buying and selling used cars in the United States.
The carvana The class action alleges that throughout the class period, the defendants made false and misleading statements and failed to disclose that: (i) Carvana faced serious ongoing problems with documentation, registration and of title with many of its vehicles; (ii) as a result, Carvana was issuing unusually frequent temporary plates; (iii) thus, Carvana violated laws and regulations in many existing markets; (iv) as a result, Carvana risked its ability to continue operations and/or expand operations in existing markets; (v) as such, Carvana was exposed to an increased risk of investigation and government action; (vi) Carvana was in discussions with state and local authorities regarding the aforementioned business tactics and issues; and (vii) Carvana was facing impending and ongoing regulatory action including license suspensions, cessation of business and probation in multiple states and counties, including in Arizona, Illinois, Pennsylvania, Michiganand North Carolina.
On June 24, 2022, Barrons published an article titled “Carvana Sought to Disrupt Auto Sales. It Delivered Undriveable Cars”, detailing, among other things, that: “[i]In its haste to take market share from its competitors, Carvana was selling cars faster than it could register them to their new owners” and “at one point formed an ad hoc unit known as the ‘group working on “unusable cars”; »[i]n other instances . . . Carvana sold cars before it had title to the vehicles, an action that is illegal in many states where the company does business”; and “State regulators across the United States have submitted [Carvana] to suspensions or increased monitoring of late registrations and its practice of issuing multiple temporary license plates from states where it has dealer licenses, instead of quickly issuing permanent licenses. “For example, the article stated that”Pennsylvania officials suspended [Carvana’s] license to issue temporary permits to its two vending machine towers in that state. . . citing late submissions of documents, “incorrect issuance and verification of Pennsylvania plates in other states,’ and other violations. “At this news, Carvana’s share price fell approximately 21% over the next two trading days, which hurt investors.
THE PRINCIPAL APPLICANT PROCESS: The Private Securities Litigation Reform Act of 1995 allows any investor who purchased or acquired publicly traded securities of Carvana during the Class Period to seek appointment as lead plaintiff. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class that is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members by directing the carvana class action. The main plaintiff can select a law firm of his choice to plead carvana class action. An investor’s ability to participate in any potential future upturn does not depend on its status as the lead claimant of the carvana class action.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The firm is ranked #1 in the 2021 ISS Securities Class Action Services Top 50 report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other company from the plaintiffs. With 200 attorneys in 9 offices, Robbins Geller is one of the largest plaintiffs firms in the world and the firm’s attorneys have secured many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Dry. Litigation Please visit the following page for more information:
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