Carvana has agreed to pay up to $500 million to settle a lawsuit over allegedly selling vehicles with faulty titles.
The settlement covers approximately 250,000 vehicles sold in 36 states and the District of Columbia.
Carvana has already taken steps to address the issue, with over 100,000 vehicles having their titles corrected prior to the settlement.
Affected customers can expect to receive a payment or reimbursement for any out-of-pocket expenses related to the faulty titles.
Settlement Details
Carvana will pay $1 million to establish a consumer restitution fund in Connecticut. This fund will be used to compensate customers who experienced delays in getting registration documents, payments, and vehicle deliveries.
The company will also pay a $500,000 penalty to the state, with the possibility of reducing it by half if they fully comply with the settlement terms.
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Lawsuit and Settlement
Carvana has been involved in several lawsuits and settlements across different states. The company agreed to a $1.5 million settlement in Connecticut after an investigation into customer complaints. Hundreds of consumers reported delays in getting registration documents, payments, and vehicle deliveries.
Carvana will pay a $500,000 penalty to the state, with the possibility of reducing it by half if the company fully complies with the settlement terms. The company also agreed to create a consumer restitution fund using $1 million from the settlement.
In addition to the Connecticut settlement, Carvana settled a lawsuit with four California counties. The company agreed to pay a total of $850,000 in damages, including $600,000 in civil penalties and $50,000 in restitution. Carvana must also pay $200,000 in administrative costs to the participating counties.
Carvana's response to the settlements emphasizes its commitment to customer satisfaction, stating that it has always worked hard to provide the best experience, including addressing issues when they arise.
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