Fraud Suit Against Carvana Moves Forward

Robbins Geller Defeats Company’s Bid to Dismiss Securities Fraud Action

On February 3, 2025, Robbins Geller Rudman & Dowd LLP swiftly defeated a motion for reconsideration against Carvana and its founder, executives, directors, and underwriters, Citigroup and J.P. Morgan Securities LLC.

The motion for reconsideration victory follows Robbins Geller’s 2024 defeat of defendants’ motions to dismiss the Amended Consolidated Complaint, which brings claims under both the Securities Exchange Act of 1934 and the Securities Act of 1933. The ruling permits the case to proceed toward discovery and, potentially, a trial in federal court in Arizona.

The case involves allegations that Carvana, an e-commerce platform for buying and selling used cars in the United States, and its executives misled investors about the company’s purportedly sustainable retail sales growth and supposed compliance with state title and registration laws and regulations. The case also alleges that Carvana and its executives, directors, and underwriters similarly misled investors in connection with the company’s April 2022 offering of common stock.

When defendants’ scheme could no longer be completely concealed, investors began to learn the truth about Carvana’s business through a series of partial disclosures that caused the company’s stock price to decline and investors to suffer losses, according to the allegations in the suit.

The Honorable Michael T. Liburdi of the United States District Court for the District of Arizona issued the ruling denying Carvana’s motion for reconsideration and permitting investors’ key claims against defendants to proceed.

“We’re pleased with the court’s rulings, and we’re eager to advance the class’s claims in discovery and ultimately towards a trial on the merits,” said partner Daniel S. Drosman, lead counsel for Carvana investors.

The case is proceeding under the leadership of the United Association National Pension Fund and Saskatchewan Healthcare Employees’ Pension Plan, who are serving as lead plaintiffs in this action and representing the investor class.

In addition to Drosman, Robbins Geller attorneys Robert M. Rothman, Tor Gronborg, David A. Rosenfeld, Erika Oliver, Rachel A. Cocalis, Sarah A. Fallon, and Jacob Gelman represent the lead plaintiffs in this case. 

About Robbins Geller

Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms, representing plaintiffs in securities fraud, shareholder derivative, antitrust, corporate takeover, and consumer fraud and privacy cases. With 200 lawyers in 10 offices, Robbins Geller is one of the world’s largest plaintiffs’ firms and the Firm’s attorneys have obtained many of the largest securities, antitrust, and consumer class action recoveries in history.

According to NERA, an independent economic consulting firm, Robbins Geller secured eight of the ten “Top Settlements” in U.S. securities litigation in 2024 and six of the top ten as sole lead counsel. The Firm has recovered more than $1 billion for investors in each of the last four years. The Firm’s attorneys also secured the largest-ever U.S. securities class action recovery - $7.2 billion - in the Enron case.

For media inquiries, please contact media@rgrdlaw.com or call (619) 338-3821.

United Association National Pension Fund v. Carvana Company, No. 2:22-cv-02126 (D. Ariz.).