A Carvana Co. board committee properly evaluated allegations that the company’s founder and CEO benefited financially from a pandemic-related refinancing before concluding no wrongdoing occurred, a Delaware judge said Wednesday.
Chancellor Kathaleen St. Jude McCormick dismissed a lawsuit pending in the Delaware Court of Chancery and targeting Carvana founder Ernest Garcia II and his son, CEO Ernest Garcia III.
The board’s special litigation committee—comprised of Neha Parikh, the former Waze CEO, and Michael Maroone, the former president and COO of AutoNation Inc.—investigated in good faith and came to a reasonable conclusion, McCormick said in an opinion.
“There is no ...
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