Carvana (US:CVNA) Globenewswire·2026-02-11 21:19Core 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][4] Group 1: Investigation Details - Carvana's shares fell over 20% on January 28 after Gotham City Research reported that the company's earnings were subsidized by related-party transactions with DriveTime and Bridgecrest [2] - The report claims that DriveTime incurred over $1 billion in cash losses while leveraging up to 20x to 40x EBITDA to support Carvana's earnings [2] - Bridgecrest reportedly marked down billions in loans as Carvana recognized gains on loan sales [2] Group 2: Eligibility and Actions - Investors who purchased Carvana common stock and experienced a decline in share value may be eligible to recover losses, regardless of whether they sold their investment [3] - Block & Leviton is prepared to file actions to recover losses on behalf of affected investors [4] 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, potentially receiving rewards of up to 30% of any successful recovery [6]