VROOM ALERT: Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against Vroom, Inc. and Encourages Investors to Contact the Firm
Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announced that Vroom, Inc. (NASDAQ: VRM) was in the U.S. District Court for the Southern District of New York on behalf of investors on November 11th 2020 and 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.
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On March 3, 2021, Vroom announced its fourth quarter and full year 2020 financial results in a press release. In it, the company reported that in the fourth quarter, “gross profit per unit for e-commerce vehicles decreased 13.1% to $ 878, primarily due to lower sales margins, partly due to improvements in inbound logistics and per-unit refurbishment costs have been balanced. ” Vroom also reported that for the fourth quarter, its “[n]The loss increased 41.9% to $ 60.7 million. ”
In that news, the company’s stock price fell $ 12.29 per share, or 27.9%, to close at $ 31.61 per share on March 4, 2021.
The complaint, filed on March 22, 2021, 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. In particular, Defendants have failed to advise investors: (1) that Vroom has 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) that Defendants’ positive statements about the Company’s business, operations and prospects as a result of the foregoing were materially misleading and / or were unfounded.
If you have purchased Vroom securities during the class period and have suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to these matters, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by email at email@example.com, by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.