Carvana (US:CVNA) Prnewswire·2026-01-29 01:43Core Viewpoint - Carvana Co. is facing scrutiny following a report from Gotham City Research alleging significant accounting irregularities and undisclosed related-party transactions, leading to a substantial drop in its stock price [2][3]. Group 1: Investigation Details - Moore Law, PLLC is investigating potential claims against Carvana's officers and directors due to the allegations raised by Gotham City Research [1]. - The stock price of Carvana fell approximately 20% to $376.46 before closing at $410.04 after the report was released [2]. - Gotham's report claims that Carvana overstated its earnings for 2023-2024 by over $1 billion and relied heavily on related-party transactions [3]. Group 2: Financial Implications - The report highlights that DriveTime's financial struggles, including burning through more than $1 billion in cash over 2023 and 2024, significantly impacted Carvana's adjusted EBITDA [3]. - There are concerns regarding a delayed 2025 10-K filing and potential restatements of past annual reports, with auditor Grant Thornton identified as a possible weak link in the financial oversight [3].