Moore Law PLLC Investigates Carvana Co. Investors' Legal Rights Following Stock Price Drop

Legal Notice to Carvana Co. Investors

In a significant move for investors, Moore Law, PLLC, a Wall Street-based law firm specializing in shareholder litigation, has announced an investigation into potential legal claims against the executives and board members of Carvana Co. (NYSE: CVNA). This comes amidst troubling allegations that have caused a sharp decline in the company’s stock price.

On January 28, 2026, following the release of a damning report by short-seller Gotham City Research, shares of Carvana plunged approximately 20%, hitting a low of $376.46 before closing at $410.04. The report brought serious claims to light, suggesting that Carvana may have overstated its earnings for the years 2023-2024 by over $1 billion and engaged in undisclosed related-party transactions.

What the Report Reveals

The investigation focuses on multiple factors, primarily stemming from Gotham City Research’s assertions that Carvana has heavily relied on financial manipulation through its ties with DriveTime, a used car dealership. The report indicates that DriveTime has faced severe financial strains, burning through over $1 billion in cash in the years mentioned. Gotham's conclusions are reportedly based on documents obtained via the Freedom of Information Act, which raises further concerns about the transparency of Carvana’s financial disclosures.

Moreover, the report has highlighted potential future complications for the company, including a delayed filing of its 10-K report for 2025 and the possibility of having to restate previous financial statements. Of particular interest is the involvement of Grant Thornton, the firm's auditor, which could be seen as a potential weak link in their financial oversight.

Call to Action for Investors

Moore Law is actively encouraging shareholders of Carvana Co. to contact the firm to discuss their rights and the potential for seeking compensation. Investors might be eligible for various forms of relief, including monetary damages, reforms in corporate governance, and reimbursement, all without any upfront costs, as representation is contingency-based. This means that shareholders will not have to pay any fees or expenses unless they win their case.

For those holding shares of Carvana (NYSE: CVNA), it's vital to act quickly. Fletcher Moore from Moore Law has offered direct communication lines via email at [email protected] for stakeholders wanting to explore their legal options.

The Bigger Picture

This situation underscores larger concerns about accountability within companies, particularly those in high-growth industries like e-commerce and automotive sales. Investors are often left reeling from sudden market shifts caused by financial unveilings such as those from Gotham City Research. As stakeholders navigate this precarious landscape, Moore Law’s involvement serves as a reminder of the importance of corporate governance and investor protection.

In conclusion, if you are an investor in Carvana Co. or have been impacted by these recent developments, it may prove prudent to consult legal assistance. Moore Law PLLC stands ready to advocate on behalf of shareholders seeking justice and accountability in the wake of these serious allegations.