Carvana Must Face Investors’ Trimmed Class Action Fraud Claims

Online used car retailer Carvana Co., along with its top executives and underwriters, will have to defend allegations that they misrepresented the company’s growth prospects after an Arizona federal judge declined to reconsider his previous order allowing proposed class action claims to proceed.

Shareholders can continue to pursue claims that Carvana failed to disclose mounting costs and the complexity of its operations, misleading them on the sustainability of its growth model before the company disclosed declining car sales in late 2022, Judge Michael Liburdi in the US District Court for the District of Arizona said in a Monday order denying ...