(Reuters). – An online retailer selling used vehicles Carvana Co (NYSE:) was denied a license to market vehicles in Illinois because of mishandling paperwork. A state official stated Wednesday that the suspension came on Wednesday.

Carvana’s shares fell 9.2%, to $37.8 during morning trading

The license was suspended due to the misuse of issuing out-of-state temporary registration permits and for failing to transfer titles, Illinois Secretary of State spokesman Henry Haupt said.

The suspension allows vehicles that were purchased and not delivered yet to be delivered. But, Illinois cannot allow new vehicle sales during this time.

Carvana stated that “we are actively working together with the State to resolve this problem”, adding that the “strongly disagrees with” the state’s description of the facts.

This license suspension follows a layoff of approximately 2,500 workers, or about 12%, by the company known for making automated cars vending machines.

Carvana’s profit forecasts for the three previous quarters were also missed due to high expenses and low demand.