Carvanas license to sell vehicles in Illinois suspended – state official

div classBodysc17zpet90 cdBBJodivpReuters – Online usedcar retailer Carvana Cos license to sell vehicles in Illinois was suspended on May 10 over the mishandling of paperwork related to its vehicle sales, a state official said on Wednesday. p

pShares of Carvana fell 9.2 to 37.8 in morning trade.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe license was suspended due to the misuse of issuing outofstate temporary registration permits and for failing to transfer titles, Illinois Secretary of State spokesman Henry Haupt said.p

pVehicles that have already been purchased but not yet delivered can still be delivered to the purchasers during the suspension, but no new vehicle sales can occur in Illinois during the suspension order, Haupt added.

“We are actively working with the state to resolve this issue,” Carvana said, adding that it “strongly disagrees” with the states characterization of both the facts and the law.p

The license suspension comes three days after the company, known for its automated car vending machines, laid off about 2,500 employees, or 12 of its workforce.p

Carvana has also missed profit estimates over the past three quarters as expenses soared and demand for used cars slipped due to soaring prices and inventory shortages.p

Reporting by Kannaki Deka in Bengaluru Editing by Amy Caren Danielp

divdivdiv classBodysc17zpet90 cdBBJodivdivdiv