Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against CarLotz, Inc. (LOTZ)

NEW YORK, July 09, 2021 (GLOBE NEWSWIRE) – Gainey McKenna & Egleston announce that a class action lawsuit has been filed against CarLotz, Inc. (“CarLotz” or the “Company”) (NASDAQ: LOTZ) in the US District Court for the southern borough of New York on behalf of those who purchased or otherwise acquired publicly traded CarLotz securities between December 30, 2020 and May 25, 2021 (the “Collection Period”).

On May 26, 2021, the company’s share price fell 13.4% after the operator of the used vehicle consignment marketplace announced that its partner had suspended deliveries to the company for the acquisition of profit-sharing company vehicles. The company lowered its forecast for the year due to the current business climate negatively impacted by the shortage of vehicles from this with-profits account coupled with the unpredictable timing of the chip shortage for new cars and its impact on the automotive wholesale and retail markets.

This announcement follows the release of disappointing financial results for the first quarter of 2021, as announced in a company press release on May 10th. CarLotz stock fell more than 20% in two days when it released its first quarter results but did not provide any forecast for unit gross profit specifically for the second quarter. William Blair’s analyst Sharon Zackfia said in a report that failure to do so will create more “investor anxiety” over the visibility of progress toward full-year goals. While management reiterated that the GPU has improved significantly on a sequential basis, CarLotz missed its original GPU targets for both fourth and first quarters. Zackfia said that due to the rapidly rising wholesale prices, CarLotz is also experiencing limited inventory levels, which has resulted in some commercial shippers liquidating through wholesale rather than consignment.

Investors who have purchased or otherwise acquired shares in CarLotz during the class action period should contact the company before September 7, 2021 Lead plaintiff’s deadline for filing. A lead plaintiff is a representative party who acts on behalf of other group members in directing the dispute. If you would like to discuss your rights or interests in relation to this class action lawsuit, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. from Gainey McKenna & Egleston at (212) 983-1300 or by email at [email protected] or [email protected].

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