Carvana CEO Accused of Insider Trading on Coronavirus Fears

Carvana Co.'s controlling family was hit with a Delaware lawsuit claiming its members used coronavirus fears to buy up shares at “bargain basement” prices when they knew from inside information that the online used car platform was weathering the pandemic well.

“Although the Covid shock affected Carvana’s shares, the fundamentals of the business were still sound, as the Garcias and other corporate insiders knew,” the Chancery Court suit says, and they “were able to grab big chunks of the company on the cheap.”

In addition to CEO and board chairman Ernest C. Garcia III, the complaint filed Thursday targets his ...