The law firm of Kirby McInerney LLP is investigating potential claims against Carvana Co. (“Carvana” or the “Company”) (NYSE: CVNA). The investigation concerns whether the Company and/or members of its senior management may have violated federal securities laws or engaged in other unlawful business practices.

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What Happened?

On January 28, 2025, Gotham City Research short seller report alleged that the Company’s reported profitability relies on undisclosed related-party transactions with DriveTime and Bridgecrest. The report claims DriveTime burned over $1 billion in cash while levering up to 20x to 40x EBITDA to subsidize Carvana’s earnings, and that Bridgecrest marked down billions in loans as Carvana recognized gains on loan sales. On this news, the price of Carvana shares declined by $67.68 per share, or approximately 14.2%, from $477.72 per share on January 27, 2026 to close at $410.04 on January 28, 2026.

What Should I Do?

At this stage, no lawsuit has been filed. The investigation is ongoing to determine whether claims may be brought under federal securities laws.

If you purchased or otherwise acquired Carvana securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.

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Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.

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