Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed Against Vroom, Inc. and Encourages Investors to Contact the Firm Before May 21, 2021
NEW YORK, April 2, 2021 (GLOBE NEWSWIRE) – Law firm Kirby McInerney LLP is reminding investors that a class action lawsuit has been filed in the U.S. District Court for the Southern Borough of New York on behalf of those who acquired Vroom. Inc. (“Vroom” or the “Company”) (NASDAQ: VRM) securities for the period June 9, 2020 through March 3, 2021 inclusive (the “Class Period”). Investors have until May 21, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
On March 3, 2021, after the market closed, Vroom announced its fourth quarter and full year 2020 financial results in a press release. The company reported that in the fourth quarter, gross profit per unit for e-commerce vehicles was down 13.1% to $ 878, mainly due to lower sales margins that were partially offset by improvements in inbound logistics and per-unit overhaul costs . Vroom also reported that its for the fourth quarter[n]The loss increased 41.9% to $ 60.7 million. “
In that news, the company’s share price fell $ 12.29 per share, or approximately 27.9%, to close at $ 31.61 per share on March 4, 2021 amid unusually high trading volume.
The lawsuit alleges that throughout the teaching period, defendants made materially false and / or misleading statements and did not disclose material adverse facts about the company’s business, business, and prospects. Specifically, Defendants have failed to provide investors with the following: (1) Vroom had failed to demonstrate its ability to control and scale the growth of its sales force to meet demand for its products. (2) that the company was, as a result, forced to discount obsolete inventory to move through its retail channels or was liquidated through its wholesale channels; (3) As a result, it was reasonably likely that the e-commerce unit gross profit decreased. and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and / or unfounded.
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If you have purchased Vroom securities, have information or would like to learn more about such claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by emailing email@example.com, or by contacting fill out this contact form to discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney is a New York-based law firm focused on securities, antitrust, and whistleblower litigation. The company’s efforts on behalf of shareholders in securities disputes have resulted in total recoveries of $ billion. For more information about the company, please visit Kirby McInerney’s website: www.kmllp.com.
This press release may be viewed as a solicitor’s advertisement in some jurisdictions under applicable laws and ethical rules.
Kirby McInerney LLP
Thomas W. Elrod, Esq., (212) 371-6600