Carvana Beats Legal Challenge to Supervoting Stock for Founder

Carvana Co. defeated shareholder litigation in Delaware challenging the used car company’s stock structure, which assigns supervoting rights to shares held by its founder and chief executive.

Chancellor Kathaleen St. J. McCormick ruled Wednesday for the company, founder Ernest Garcia II, and CEO Ernest Garcia III. McCormick, chief judge of Delaware’s Chancery Court, said in a pair of one-page orders that her decision was based on the reasoning laid down in a recent opinion by another Delaware judge rejecting virtually identical claims against Bumble Inc.

The earlier ruling by Vice Chancellor J. Travis Laster upheld charter provisions granting 10 votes ...