Rosen Law Firm Investigates Securities Claims for Carvana Shareholders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Businesswire
- Securities Claims Investigation: Rosen Law Firm announces an investigation into potential securities claims against Carvana Co. due to allegations of issuing materially misleading business information, which could undermine investor confidence.
- Stock Price 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, raising concerns about financial transparency.
- Class Action Preparation: The Rosen Law Firm is preparing a class action to seek compensation for investor losses, allowing investors to participate without upfront costs through a contingency fee arrangement, thus alleviating financial burdens on investors.
- Firm 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 expertise and experience in handling such cases.
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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: 410.040
Low
360.00
Averages
475.88
High
550.00
Current: 410.040
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.
Carvana Faces Regulatory Risks as Stock Plummets Amid Accounting Concerns
- Accounting Warning: Gotham City Research's report claims Carvana's earnings are overstated by over $1 billion, potentially leading to regulatory troubles, indicating that the company's profitability is far less than believed, increasing investor risk.
- Stock Price Plunge: Following Gotham's report, Carvana's shares plummeted 10% on Wednesday, reflecting market concerns over its financial transparency and business practices, which may impact future financing capabilities.
- Analyst Optimism: Despite challenges, JPMorgan raised Carvana's price target from $490 to $510, expecting a 'solid beat and raise' in Q4, reflecting confidence in the company's unit growth assumptions.
- Sales Expectations Rise: Carvana anticipates selling over 150,000 units in Q4, an increase from 114,379 units sold in the same quarter last year, indicating strong market demand remains robust in a stable operating environment.
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Pomerantz LLP Investigates Carvana for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Carvana and its executives have engaged in securities fraud or other unlawful business practices, which could undermine investor confidence and the company's reputation.
- Earnings Overstatement Allegations: Gotham City Research LLC claims that Carvana's earnings for 2023-2024 are overstated by over $1 billion, revealing a greater dependency on related parties than disclosed, potentially leading to investor losses.
- Significant Stock Price Drop: Following the report, Carvana's stock price fell by $67.68, or 14.17%, closing at $410.04 per share on January 28, 2026, indicating market concerns regarding the company's financial health.
- Potential Legal Action Impact: Pomerantz LLP, a prominent securities litigation firm, may provide legal support for affected investors, further exacerbating the legal and financial risks faced by Carvana.
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