Carvana (CVNA) shares in Tumble as a forensic research company

On By Littum

SAN FRANCISCO, Jan. 13, 2025 (GLOBE NEWSWIRE) — Carvana Co. ((NYSE: CVNA) shares fell nearly 13% in the two days ending January 3, 2025, as the market digested a scathing report published by Hindenburg Research on 2 January 2025.

Hagens Berman has opened an investigation and is urging investors in Carvana stock who have suffered significant losses to submit your losses now.

Visit: www.hbsslaw.com/investor-fraud/cvna
Contact the company now: [email protected]
844-916-0895

Carvana Co. (CVNA) examination:

The investigation is focused on the accuracy of Carvana’s related party transaction disclosures under applicable accounting rules and SEC rules and regulations.

On January 2, 2025 Hindenburg Researcha prominent forensic financial research firm, released a scathing report titled “Carvana: A Father-Son Accounting Grift For The Ages.” This comprehensive document is the culmination of four months of painstaking research involving 49 interviews with industry experts, former employees, competitors and Carvana stakeholders.

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

Key to The Hindenburgs under scrutiny is Carvana’s purchase commitment agreement with Ally Financial, through which the company offloaded $3.6 billion in auto loans (~60% of Carvana’s total production) by 2023. The Hindenburgs analysis reveals a worrying trend: per As of September 30, 2024, Carvana’s sales to Ally had declined significantly and that:

  1. “a new, unnamed buyer has quietly appeared, just when Carvana needed it(;)”
  2. “(i) In the past two quarters, Carvana sold $800 million in loans to ‘an unrelated third party(;)'”
  3. ”