INVESTIGATION ALERT: Edelson Lechtzin LLP Announces Investigation Carvana Co. (NYSE: CVNA) and Urges Investors with Substantial Losses to Contact the Firm

Company Overview - Carvana Co is an online retailer specializing in used vehicles [2] Allegations and Investigation - Edelson Lechtzin LLP is investigating potential violations of federal securities laws involving Carvana Co due to allegations of providing potentially misleading business information to investors [1] - Hindenburg Research accused Carvana of deceptive financial practices, including questionable accounting and undisclosed loans to a related party amounting to $800 million [3] - The report highlights risks such as lax loan underwriting practices, falling vehicle prices, and rising subprime loan delinquencies [3] Financial and Operational Concerns - Between August 2020 and August 2021, Garcia III and his father, Ernest Garcia II, sold$3.6 billion worth of Carvana stock [4] - Carvana's stock rose 284% in 2024 and is described as "exorbitantly valued" [4] - The CEO's father sold another $1.4 billion of CVNA stock as the company faces increasing credit losses and a 20% drop in its customer base since 2021 [4] - Carvana has nearly 1,000 complaints and a 1.1-star rating from the Better Business Bureau, raising concerns about its viability [4]