10 Firms Buck Broader Market Optimism

2. Carvana Co. (NYSE:CVNA)

Shares of Carvana Co. dropped for a fifth day on Friday following news that a shareholder law firm was investigating the company over alleged violations of the securities law.

According to reports, the Schall Law Firm initiated a probe into Carvana’s alleged false and misleading statements and its failure to disclose information pertinent to investors.

The investigation stemmed from a recent report published by Hindenburg Research on January 2, 2025, titled: “Carvana: A Father-Son Accounting Grift For The Ages,” which alleged that the company’s turnaround is a “mirage.”

“Our research uncovered $800 million in loan sales to a suspected undisclosed related party, along with details on how accounting manipulation and lax underwriting have fueled temporary reported income growth—all while insiders cash out billions in stock,” the report claimed.