Johnson Fistel, LLP Files Class Action Suit Against Vroom, Inc. (VRM)
SAN DIEGO, March 25, 2021, / (PRNewswire)
Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of shareholders of Vroom, Inc. (NASDAQ: VRM) common stock during the period between June 9, 2020 and March 3, 2021, inclusive (the “Class Period”).
The complaint alleges that, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Vroom was unable to sell a significant portion of existing inventory as a result of inadequate sales personnel and overreliance on third-party sales support; (ii) Vroom’s lack of adequate sales and support staff had resulted in severe growth constraints, degraded customer experience, lost sales opportunities and a greater than 10% increase in average days to sale for Vroom products; (iii) Vroom had been forced to markdown and liquidate existing inventory at fire-sale prices; and (iv) as a result of the foregoing, defendants’ positive statements about Vroom’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On March 3, 2021, Vroom announced its fourth quarter and full-year 2020 financial results. Therein, Vroom reported that fourth-quarter “Ecommerce Vehicle gross profit per unit decreased 13.1% to $878, driven primarily by lower sales margins, partially offset by improvements in inbound logistics and reconditioning costs per unit.” Vroom also reported that for the fourth quarter, its “[n]et loss increased 41.9% to $60.7 million.” During the accompanying earnings call, defendants revealed that Vroom was suffering from serious sales and support bottlenecks which had severely constrained the Company’s growth and profits per vehicle. On this news, Vroom’s stock price fell 28%, damaging investors.
If you wish to serve as lead plaintiff in this class action, you must move the Court no later than May 21, 2021. A lead plaintiff will act on behalf of all other class members in directing the Vroom class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Vroom class-action lawsuit. An investor’s ability to share any potential future recovery of the Vroom class action lawsuit is not dependent upon serving as lead plaintiff.
Additionally, you can [click here to join this action]. There is no cost or obligation to you.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.