CVNA INVESTIGATION NEWS: Carvana Co. Short Seller Report Triggers Securities Fraud Investigation after Stock Drops Over 20% — Investors Notified to Contact BFA Law

NEW YORK–(BUSINESS WIRE)–$CVNA #BFA–Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Carvana Co. (NYSE:CVNA) for potential violations of the federal securities laws.

If you invested in Carvana, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/carvana-class-action-lawsuit.

Why is Carvana Being Investigated for Securities Fraud?

Carvana is being investigated for violations of the federal securities laws following a significant stock drop resulting from claims of accounting improprieties. The decline in Carvana’s stock price caused significant losses to investors.

Carvana is an online e-commerce platform and used-car retailer that allows customers to buy, sell, or finance vehicles entirely online. A significant portion of Carvana’s revenue comes from its ability to sell vehicles online and originate auto loans, which are subsequently securitized or sold to external parties.

BFA is investigating whether Carvana overstated its earnings and improperly accounted for related party transactions.

Why did Carvana’s Stock Drop?

On January 28, 2026, during market hours, Gotham City Research LLC issued a report titled “Carvana: Bridgecrest and the Undisclosed Transactions and Debts.” The Gotham City report stated that Carvana’s results are deeply intertwined with a network of related party entities controlled by Ernest Garcia II, including DriveTime, Bridgecrest, and GoFi. It further stated that this structure is supported by evidence of loan-level intermingling and accounting irregularities. The report concludes that these hidden relationships overstated Carvana’s earnings by over $1 billion and poses substantial risks to investors.

On this news, the price of Carvana stock dropped over 20%, from $474.06 per share at open on January 28, 2026 to a low of $374.55 per share.

Click here for more information: https://www.bfalaw.com/cases/carvana-class-action-lawsuit.

What Can You Do?

If you invested in Carvana, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/carvana-class-action-lawsuit

Or contact:
Adam McCall
[email protected]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/carvana-class-action-lawsuit

Attorney advertising. Past results do not guarantee future outcomes.

Contacts

Adam McCall
[email protected]
212.789.3619