CVNA DOWN 20%: Carvana Shareholders Should Contact Block & Leviton to Potentially Recover Losses

Core Viewpoint - Block & Leviton is investigating Carvana Co. for potential securities law violations following a report alleging that the company's profitability is based on undisclosed related-party transactions [1][2]. Group 1: Company Performance and Allegations - Carvana's shares fell over 20% on January 28, 2026, after a report from Gotham City Research claimed that the company relies on undisclosed transactions with DriveTime and Bridgecrest to report profitability [2]. - The report alleges that DriveTime incurred over $1 billion in cash losses while leveraging up to 20x to 40x EBITDA to support Carvana's earnings [2]. - It is also claimed that Bridgecrest marked down billions in loans while Carvana recognized gains from loan sales [2]. Group 2: Legal Actions and Investor Information - Block & Leviton is investigating whether Carvana committed securities law violations and may file an action to recover losses for affected investors [4]. - Investors who purchased Carvana common stock and experienced a decline in share value may be eligible to participate in the investigation, regardless of whether they sold their shares [3]. - The firm encourages investors who have lost money to contact them for more information on potential recovery options [5]. Group 3: Whistleblower Information - Individuals with non-public information about Carvana are encouraged to assist in the investigation or report to the SEC under the whistleblower program, which offers rewards of up to 30% of any successful recovery [6]. Group 4: Firm's Reputation and Services - Block & Leviton is recognized as a leading securities class action firm, having recovered billions for defrauded investors and representing many top institutional investors [7].