Radnor, Pennsylvania – (Newsfile Corp. – April 4, 2021) – Law firm Kessler Topaz Meltzer & Check, LLP reminds investors of Vroom, Inc. (NASDAQ: VRM) (“Vroom”) of a class action lawsuit for securities fraud Filed names of those who purchased or acquired Vroom securities between June 9, 2020 and March 3, 2021 inclusive (including the “Class Period”).
Investor Deadline Reminder: Investors who have purchased or acquired Vroom Securities during the Class Period may apply for appointment as Class Lead Prosecutor no later than May 21, 2021. For more information or to learn how to participate in this litigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; by email to email@example.com; or click on https://www.ktmc.com/vroom-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=vroom
Vroom operates an end-to-end e-commerce platform that sells fully refurbished vehicles.
The class period begins on June 9, 2020 when Vroom filed the prospectus for its initial public offering (“IPO”) with the US Securities and Exchange Commission (“SEC”) on a Form 424B4 which included and was part of the IPO statement.
According to the complaint, on March 3, 2021, Vroom announced its fourth quarter and full year 2020 financial results. In it, Vroom reported that in the fourth quarter, “gross profit per unit for e-commerce vehicles was down 13.1% to $ 878, largely due to lower sales margins, partly due to improvements in inbound logistics and overhaul costs were balanced per unit. ” Vroom also reported that for the fourth quarter, its “[n]The loss increased 41.9% to $ 60.7 million. “During the accompanying profit call, Defendants found that Vroom was suffering from severe sales and support bottlenecks that had severely limited Vroom’s growth and earnings per vehicle.
The story goes on
Following the news, Vroom’s share price fell $ 12.29 per share, or 27.9%, to close at $ 31.61 per share on March 4, 2021.
The complaint alleges that throughout the classroom, the defendants provided false and / or misleading information and / or failed to disclose that: (i) Vroom was unable to sell a substantial portion of its existing inventory through inadequate sales force and lack of reliability on sales support Third; (ii) Vroom’s lack of adequate sales and support staff had resulted in severe growth restraints, a deterioration in the customer experience, missed sales opportunities and an increase in the average sales days for Vroom products by more than 10%. (iii) Vroom had been forced to record and liquidate existing inventory at fire sale prices; and (iv) as a result of the foregoing, Defendants’ positive statements about Vroom’s business, business and prospects were materially misleading and / or unfounded.
Vroom investors can attempt to be appointed as the class lead plaintiff no later than May 21, 2021 by Kessler Topaz Meltzer & Check, LLP, or other attorney, or they can choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the dispute. To be named lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members and that the class member is adequately representing the class. Your ability to get involved in a recovery will not be affected by whether or not you will be the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP, pursues class actions in state and federal courts across the country involving securities fraud, fiduciary violations, and other violations of federal and state law. Kessler Topaz Meltzer & Check, LLP, is a driving force behind corporate governance reform and has reclaimed billions of dollars on behalf of institutional and individual investors from the US and around the world. The company represents investors, consumers and whistleblowers (individuals who report fraudulent practices against the government and are involved in recovering government dollars). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP. Further information on Kessler Topaz Meltzer & Check, LLP can be found at www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro Jr., Esq.
Adrienne Bell, Esq.
280 Street of the King of Prussia
Radnor, PA 19087
(844) 887-9500 (toll free)
The source version of this press release can be found at https://www.newsfilecorp.com/release/79172