VRM CLASS ACTION NOTICE: The Law Offices of Frank R. Cruz Files Securities Fraud Lawsuit Against Vroom, Inc.
THE ANGEL–(BUSINESS WIRE) – Frank R. Cruz’s law firm announces it has filed a class action lawsuit in the U.S. District Court for the Southern Borough of New York, titled Zawatsky v Vroom, Inc., et al. (Case # 1: 21-cv-02477) on behalf of any person or entity who acquired securities of Vroom, Inc. (“Vroom” or the “Company”) (NASDAQ : VRM) purchased or otherwise acquired; inclusive (the “teaching period”). Plaintiff is pursuing claims under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby notified that they have 60 days after such notification to appoint the court as the lead plaintiff in this lawsuit.
If you are a shareholder who has suffered a loss, click here to participate.
On March 3, 2021, after the market closed, Vroom announced its fourth quarter and full year 2020 financial results in a press release. In it, the company reported that unit gross profit for e-commerce vehicles decreased 13.1% to $ 878 in the fourth quarter, mainly due to lower sales margins, partly due to improvements in inbound logistics and overhaul costs were balanced per unit. “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 27.9%, to close at $ 31.61 per share on March 4, 2021 in an unusually high trading volume.
The complaint filed in this class action alleges that throughout the collection period the defendants made materially false and / or misleading statements and did not disclose material adverse facts about the business, business and prospects of the company. 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 purchased Vroom securities during the class period, you may move the court no later than 60 days after this notice to request the court to appoint you as the lead plaintiff. You don’t need to take any action at this point to be a member of the class. You can keep an attorney of your choice or take no action and remain an absent member of the class. If you have purchased Vroom securities, have information or would like to learn more about these claims, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Frank R. Cruz of the Frank R. Law Firms. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067, 310-914-5007, email firstname.lastname@example.org or visit our website at www.frankcruzlaw.com. When inquiring by email, please include your postal address, telephone number and the number of shares purchased.
This press release may be viewed as a solicitor’s advertisement in some jurisdictions under applicable laws and ethical rules.