PHOENIX (CN) — The United Association National Pension Fund is seeking further discovery in a class action accusing Carvana founder Ernie Garcia III of artificially inflating stock prices and profiting off his father’s $3.6 billion in insider sales.
Representing a still-unconfirmed number of injured investors, attorneys for the pension fund accuse Garcia III and Carvana of issuing false and misleading financial statements, artificially inflating stock prices, of which Garcia’s father, billionaire Ernest Garcia II, is the largest shareholder.
The bubble burst in May 2022. The company’s stock price fell 18%, and it laid off more than 2,500 workers in response. The stock continued to plummet into November 2022, when Carvana laid off another 1,500 employees…