Carvana controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile5 entries
2025
Hindenburg Research allegations
Hindenburg Research published a short-seller report alleging that Carvana's reported turnaround was supported by accounting manipulation, favorable related-party transactions, and inadequate auto-loan underwriting. These claims were allegations in an investor report and were not presented here as adjudicated findings.
2025
Securities-fraud class action
A securities-fraud class action brought by institutional investors against Carvana, its founders, executives, and underwriters was allowed to proceed after motions to dismiss and reconsideration were denied. The plaintiffs allege that disclosures concerning the company's business and financial reporting caused investor losses.
2022
Illinois title and temporary-registration dispute
Illinois authorities suspended Carvana's business license after customer complaints and alleged failures to deliver titles within the statutory period, along with alleged improper temporary registrations. The suspension was lifted under conditions, later reimposed, and subsequently challenged in court. Carvana vice president Paul Breaux faced misdemeanor and petty-offense charges connected with the matter.
2022
Michigan dealership license suspension
Michigan suspended the license of Carvana's Novi dealership, citing violations of the Michigan Vehicle Code and immediate harm to the public. The action followed an earlier investigation, probation, and additional alleged violations.
2021
North Carolina title and inspection dispute
North Carolina regulators temporarily restricted Carvana's Raleigh vending-machine operations, citing failures involving vehicle inspections and the provision of titles. The facility later resumed operations.