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NYSE: CVNA Investor Notice: Lawsuit against directors of Carvana Co. announced by Shareholders Foundation

Shareholders Foundation, Inc.
·2 min read

SAN DIEGO, Sept. 22, 2021 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit by an investor in Carvana Co. (NYSE: CVNA) shares is pending.

Investors, who purchased Carvana shares in February 2020 or earlier and continue to hold any of their NYSE: CVNA shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

In May 2020, a lawsuit was filed against certain directors of Carvana. The plaintiff alleges that Carvana is controlled by the Garcia family. The plaintiff said that Carvana’s CEO, Chairman, and President, Ernest Garcia III, is the son of used car mogul and billionaire Ernest Garcia II, and that they together control more than 92% of Carvana’s voting power.

With the lawsuit the plaintiff seeks to challenge a controlled company’s decision to issue millions of shares to its controllers at a bargain-basement price.

The plaintiff alleges that despite knowing that Carvana was well positioned to weather the pandemic, the controllers caused, and the Board of Directors of Carvana Co permitted, a self-dealing transaction that was designed to – and had the effect of – benefitting the controllers at the Company’s expense.

In essence, the plaintiff said that the issuance of millions of shares at a discount enriched the controllers while cheating the Company out of millions of dollars of fair value for the shares.

Recently it was reported that Ernest Garcia II has sold billions worth of the company stock since October 2020, which raised eyebrows over whether the ownership structure of Carvana gives the family too much control.

Those who purchased Carvana Co. (NYSE: CVNA) shares should contact the Shareholders Foundation, Inc.

CONTACT:
Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
mail@shareholdersfoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. Any referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is only provided as a public service. It is not intended as legal advice and should not be relied upon.