On Wednesday, investors threw Carvana (NYSE: CVNA) stock sharply in reverse. The company's share price took a nearly 3.2% hit on the day, in contrast to the essentially flat S&P 500 index. A new legal settlement did little to make those investors confident.
Tuesday afternoon near market close, Carvana announced that it reached a settlement with the state of Illinois. In return for admitting it violated Illinois law, it will be allowed to continue transacting vehicles through its online platform and via its car vending machine located in the city of Oak Brook.
In return, the company has agreed to forfeit a $250,000 bond and to be subjected to additional licensing inspections by state officials. If further violations occur, Carvana risks losing its dealership license in Illinois.
For further details see:
Why Carvana Investors Slammed on the Brakes Today