Deadline Reminder: Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Carvana Co. (CVNA)
Law Offices of Howard G. Smith reminds investors of the upcoming October 3, 2022 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Carvana Co. ("Carvana" or the "Company") (NYSE: CVNA) securities between May 6, 2020 and June 24, 2022, inclusive (the "Class Period").
Investors suffering losses on their Carvana investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
On June 24, 2022, after market hours, Barron's published an article which alleged, among other things, that Carvana "was selling cars faster than it could get them registered to their new owners," and had been "issuing multiple temporary license plates from states where it has dealer's licenses, instead of promptly providing permanent ones."
On this news, Carvana's stock fell $6.78, or 21.5%, over the next two trading days to close at $24.74 per share on June 28, 2022, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defedants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Carvana securities during the Class Period, you may move the Court no later than October 3, 2022 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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