Rosen Law Firm Investigates Carvana Securities Fraud Claims
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy CVNA?
Source: Globenewswire
- Securities Fraud Investigation: Rosen Law Firm has announced an investigation into Carvana Co. due to potential misleading business information issued to investors, which may lead to securities claims for shareholders.
- Stock Price Plunge: On January 28, 2026, Carvana's stock fell 14% following a short-seller report alleging that the company's earnings were more dependent on private companies linked to its controlling shareholders, raising significant investor concerns.
- Class Action Preparation: The Rosen Law Firm is preparing a class action to seek compensation for investors who suffered losses due to Carvana's misleading information, with no out-of-pocket fees required from investors.
- Firm's Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its strong capabilities and influence in the field.
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Analyst Views on CVNA
Wall Street analysts forecast CVNA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVNA is 475.88 USD with a low forecast of 360.00 USD and a high forecast of 550.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
16 Buy
2 Hold
0 Sell
Strong Buy
Current: 407.890
Low
360.00
Averages
475.88
High
550.00
Current: 407.890
Low
360.00
Averages
475.88
High
550.00
About CVNA
Carvana Co. is a holding company. The Company operates an e-commerce platform for buying and selling used cars. The Company primarily acquires used vehicle inventory directly from customers, used car auctions, and wholesale used vehicle suppliers, including retail marketplace partners. Once it acquires a vehicle, the Company leverages its in-house logistics network or a vendor to transport the vehicle to one of its inspection and reconditioning centers (IRC) or auction locations with reconditioning capabilities, at which point the vehicle enters its inventory management system. It offers a mobile-optimized Website, where prospective retail car buyers can immediately begin browsing, researching, filtering, and identifying their vehicle of choice, where it offers an annotated virtual vehicle tour, which includes a 360-degree view of the interior and exterior of the actual vehicle. The Company also offers integrated financing using its loan origination platform.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Service Expansion: Carvana has launched same-day delivery in the Eugene area, allowing customers to receive their vehicles on the same day they place an order, significantly enhancing the car-buying experience and meeting local demand for rapid service.
- Convenient Transactions: Customers can enjoy same-day pick-up after completing Carvana's online vehicle appraisal, which not only boosts customer satisfaction but also strengthens Carvana's appeal in the competitive used car market.
- Logistics Network Optimization: With a robust logistics network and regional infrastructure, Carvana enables customers to go from online checkout to vehicle delivery in just hours, further improving operational efficiency and driving business growth.
- Market Expansion Plans: Initially launched in Arizona, Carvana's same-day delivery service is now available in select markets across over 20 states, with plans to continue scaling this offering to enhance national logistics and reconditioning infrastructure.
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- Securities Fraud Investigation: Rosen Law Firm has announced an investigation into Carvana Co. due to potential misleading business information issued to investors, which may lead to securities claims for shareholders.
- Stock Price Plunge: On January 28, 2026, Carvana's stock fell 14% following a short-seller report alleging that the company's earnings were more dependent on private companies linked to its controlling shareholders, raising significant investor concerns.
- Class Action Preparation: The Rosen Law Firm is preparing a class action to seek compensation for investors who suffered losses due to Carvana's misleading information, with no out-of-pocket fees required from investors.
- Firm's Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its strong capabilities and influence in the field.
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- Securities Fraud Investigation: Pomerantz LLP is investigating whether Carvana and its executives have engaged in securities fraud or other unlawful business practices, indicating significant legal risks that could undermine investor confidence and stock performance.
- Earnings Overstatement Allegations: Gotham City Research LLC issued a report on January 28, 2026, claiming that Carvana's earnings for 2023-2024 are overstated by over $1 billion, revealing a lack of financial transparency that could lead to investor losses.
- Significant Stock Price Drop: Following the report's release, Carvana's stock plummeted by $67.68, a 14.17% decline, closing at $410.04 per share, reflecting severe market concerns regarding the company's financial health.
- Potential Legal Consequences: Pomerantz LLP, recognized for its expertise in securities litigation, may initiate a class action against Carvana, and if the investigation confirms wrongdoing, it could have substantial repercussions on the company's future operations and reputation.
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- Investigation Background: Bleichmar Fonti & Auld LLP has announced an investigation into Carvana for potential violations of federal securities laws, particularly following significant stock drops attributed to accounting improprieties that have resulted in substantial investor losses.
- Stock Price Plunge: On January 28, 2026, Carvana's stock fell over 20%, from $474.06 at market open to a low of $374.55, triggered by a report from Gotham City Research that revealed undisclosed transactions and debts related to Carvana.
- Financial Misconduct: The investigation focuses on whether Carvana overstated its earnings and improperly accounted for related party transactions, with the report indicating that these hidden relationships may have inflated Carvana's earnings by over $1 billion, posing significant risks to investors.
- Legal Options: BFA encourages investors in Carvana to submit their information to explore legal options, with all representation on a contingency fee basis, meaning investors are not responsible for any court costs, providing a potential avenue for affected shareholders to seek legal recourse.
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- Securities Fraud Investigation: Bleichmar Fonti & Auld LLP has announced an investigation into Carvana for potential violations of federal securities laws, particularly following significant stock drops attributed to accounting improprieties, resulting in substantial investor losses.
- Stock Price Plunge: On January 28, 2026, Gotham City Research released a report claiming that Carvana's financial results are deeply intertwined with a network of related party entities controlled by Ernest Garcia II, stating that these hidden relationships overstated Carvana's earnings by over $1 billion, leading to a more than 20% drop in stock price in a single day.
- Investor Losses: Following the report, Carvana's stock price plummeted from $474.06 at market open to a low of $374.55, reflecting severe market concerns regarding its financial transparency and potentially impacting its future financing capabilities.
- Legal Options for Investors: BFA encourages Carvana investors to submit their information for legal assistance, with all representation on a contingency fee basis, indicating the accessibility of legal recourse and the importance of investor protection.
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- Securities Claims Investigation: Rosen Law Firm has announced an investigation into potential securities claims against Carvana Co. due to allegations of issuing materially misleading business information, which could significantly impact investor decisions.
- Stock Price Decline Impact: On January 28, 2026, Carvana's stock fell 14% following a short-seller report alleging that the company's earnings were more dependent on private companies linked to its controlling shareholders, directly affecting investor confidence and market performance.
- Class Action Preparation: The Rosen Law Firm is preparing a class action to seek compensation for investors who purchased Carvana securities, with no out-of-pocket fees required, thereby reducing the financial burden on investors.
- Law Firm's Advantages: Known for its successful track record in securities class actions, Rosen Law Firm recovered over $438 million for investors in 2019 alone, showcasing its expertise and resource advantages in handling such cases.
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