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Carvana Stock Dives Following Gotham City Short Report - Carvana (NYSE:CVNA)
Gotham City Research alleges Carvana overstated earnings by more than $1 billion and relied on related-party transactions, risking regulatory trouble and restatements, per the report.
- During market hours on Jan. 28, 2026, Gotham City Research LLC alleged Carvana Co overstated its 2023–24 earnings by over $1 billion, sending shares down 16%.
- Gotham's report argues Carvana Co relies on related-party financing via DriveTime Automotive Group, Inc. and Bridgecrest Acceptance Corp., citing loan intermingling and accounting irregularities.
- Gotham details DriveTime's leverage between 20x and 40x, with loans tied to Carvana on VinAudit and Bridgecrest's balance sheet, and alleges DriveTime burned over $1 billion in cash flow.
- Securities law firm Bleichmar Fonti & Auld LLP announced an investigation into Carvana Co for potential federal securities-law violations, while Gotham predicts restatements and Grant Thornton's resignation.
- After Hindenburg Research's bet last year, Carvana Co entered the S&P 500 last month and faces renewed scrutiny amid volatile trading since a bankruptcy scare.
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13 Articles
CVNA BREAKING INVESTIGATION: BFA Law Launches Investigation into Carvana Co. after Gotham City Report Leads to 20% Stock Drop -- Investors Notified to Contact the Firm
BFA Law Launches Investigation into Carvana Co. after Gotham City Report Leads to 20% Stock Drop -- Investors Notified to Contact the Firm...
BREAKING: Carvana Co. Investigated for Securities Fraud; Investors Should Contact Block & ...
BOSTON, Jan. 28, 2026 (GLOBE NEWSWIRE) -- Block & Leviton is investigating Carvana Co. (NYSE: CVNA) for potential securities law violations. Investors who have lost money in their Carvana Co. investment should contact the firm to learn more about how…
Coverage Details
Total News Sources13
Leaning Left2Leaning Right0Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 33%
C 67%
Factuality
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