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United States-based short seller Hindenburg Research has alleged that online car dealer Carvana Company has $800 million in loan sales under a suspected undisclosed related party transaction, as per a report released on January 2. It has taken a short position on the business and stocks tanked by close to 5 per cent after Hindenberg's report was published. “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,” alleged Hindenburg Research in its report titled — “ Carvana : A Father-Son Accounting Grift For The Ages.
” Shares of the $44 billion company dropped nearly 5 per cent after the short seller released the report. The company's main business is to provide retail customers with an online platform to buy and sell used cars. Top 10 Things You Need To Know.
