Of the. Class action lawsuit against Carvana stock offering may go ahead

By Leslie A. Pappas (June 30, 2022, 6:41 p.m. EDT) – Shareholders of online used-car platform Carvana Co. who allege breaches of fiduciary duty in connection with a direct stock offering of $600 million can pursue their class action lawsuit against the father and son who founded the company, the Delaware Chancery court ruled Thursday.

Shareholders say that at the height of the pandemic, Carvana founder Ernest Garcia II and his son Ernst Garcia III, the company’s chairman, president and chief executive, executed a direct stock offering to them themselves and to selected investors at less than fair market value. , while excluding public shareholders from participating in the offer.

In a decision Thursday,…

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