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Carvana Investors Should Contact Block & Leviton To Potentially Recover Losses
Globenewswire· 2026-02-19 17:38
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][4]. Group 1: Investigation Details - Carvana's shares fell over 20% on January 28 after Gotham City Research reported that the company's profitability relies on undisclosed 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]. - Additionally, it is alleged that Bridgecrest 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 actively investigating potential securities law violations and may file actions to recover losses for 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]. Group 4: Firm's Reputation - Block & Leviton is recognized as a leading securities class action firm, having recovered billions for defrauded investors and representing many top institutional investors [7].