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CVNA.US
On June 24, 2022, Barron’s published an article that raised matters, 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.” The article also disclosed that "state regulators across the U.S. have been subjecting the company to suspensions or increased oversight over registration delays and its practice of issuing multiple temporary license plates from states where it has dealer’s licenses, instead of promptly providing permanent ones."
Thus, Carvana was violating laws and regulations in many existing markets, consequently, risking its ability to continue business and increasing the risk of governmental investigation and action.
As a result, Carvana was facing imminent and ongoing regulatory actions including license suspensions, business cessation, and probation in several states and counties including Arizona, Illinois, Pennsylvania, Michigan, and North Carolina.
On this news, Carvana’s stock fell by 21.5% over the next 2 trading days after the Article release to close at $24.74 per share on June 28, 2022.
Alleged Offence
Mismanagement
Financial Misrepresentation
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
24 June 2022
Collecting participants…
Created by Stan Vick, Scout

Carvana Co

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle;...

    Ticker
    CVNA.US
    ISIN
    US1468691027
    CIK
    1690820
    Sector
    Consumer Cyclical
    Industry
    Auto & Truck Dealerships
    Country
    USA
    Address
    300 East Rio Salado Parkway, Tempe, AZ, United States, 85281