Kessler Topaz Meltzer & Check, LLP Announces Deadline in Securities Fraud Class Action Lawsuit Filed Against Vroom, Inc.
RADNOR, Pa., April 24, 2021 (GLOBE NEWSWIRE) – Law firm Kessler Topaz Meltzer & Check, LLP is reminding investors that a class action lawsuit has been filed against Vroom, Inc. (NASDAQ: VRM) for securities fraud (“Vroom”) in the U.S. District Court for the Southern Borough of New York on behalf of those who have intermediate bought or acquired Vroom securities June 9, 2020 and March 3, 2021including (the “Class Period”).
Investor Deadline Reminder: Investors who have bought or acquired Vroom securities during the lesson period, no later than May 21, 2021try to be appointed as the plaintiff’s principal representative of the class. 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; per email to email@example.com; or click 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 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 its gross profit per unit for e-commerce vehicles fell 13.1% to $ 878 in the fourth quarter, largely due to lower sales margins, partly due to improvements in inbound logistics and the cost of overhaul per Unit have been balanced. “Vroom also reported that its for the fourth quarter[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.
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 lacking a reasonable basis.
Vroom investors can, no later than May 21, 2021, attempt to be appointed as the class lead plaintiff by Kessler Topaz Meltzer & Check, LLP, or other attorney, or 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. For more information on Kessler Topaz Meltzer & Check, LLP, please visit 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)