(Reuters) – Short seller Hindenburg Research said on Thursday it was short on used-car retailer Carvana Co (NYSE:CVNA).
“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,” Hinderburg alleged in its report.
Carvana did not immediately respond to a Reuters request for comment on the report.
Shares of the Tempe, Arizona-based company fell as much as 5% after the report but pared losses to trade down 1.5%.
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