CVNA BREAKING INVESTIGATION: BFA Law Launches Investigation into Carvana Co. after Gotham City Report Leads to 20% Stock Drop -- Investors Notified to Contact the Firm

Core Viewpoint - Carvana Co. is under investigation for potential violations of federal securities laws due to significant stock price drops linked to claims of accounting improprieties [1][2]. Company Overview - Carvana operates as an online e-commerce platform and used-car retailer, facilitating the buying, selling, and financing of vehicles entirely online. A substantial portion of its revenue is derived from online vehicle sales and auto loans, which are often securitized or sold to external parties [3]. Investigation Details - The investigation by Bleichmar Fonti & Auld LLP focuses on whether Carvana overstated its earnings and improperly accounted for related party transactions [3]. - Gotham City Research LLC released a report alleging that Carvana's financial results are closely tied to a network of related entities controlled by Ernest Garcia II, including DriveTime, Bridgecrest, and GoFi. The report claims that these relationships led to an overstatement of Carvana's earnings by over $1 billion, indicating substantial risks for investors [4]. Stock Performance - Following the release of the Gotham City report, Carvana's stock price fell over 20%, dropping from $474.06 per share at market open on January 28, 2026, to a low of $374.55 per share [5].