SHAREHOLDER ALERT: Robbins LLP Announces that CarLotz, Inc. (LOTZ, LOTZW) is Being Sued for Misleading Shareholders
SAN DIEGO & RICHMOND, Va.--(BUSINESS WIRE)--Jul 12, 2021--
Shareholder rights law firm Robbins LLP announces that a class action has been filed on behalf of all purchasers of CarLotz, Inc. (NASDAQ: LOTZ, LOTZW) between December 30, 2021 and May 25, 2021, for violations of the Securities Exchange Act of 1934. CarLotz operates a consignment-to-retail used vehicle marketplace where corporate vehicle sourcing partners and retail sellers of used vehicles can sell at prices that are, on average, below those of traditional dealerships.
If you suffered a loss due to CarLotz, Inc.’s misconduct, click here.
CarLotz, Inc. (LOTZ, LOTZW) Made False and Misleading Statements Regarding its Business, Operations, and Prospects
According to the complaint, CarLotz became a public entity via merger with Acamar Partners Acquisition Corp., a blank check company. On March 15, 2021, CarLotz announced its fourth quarter and full year 2020 financial results. In particular, the Company noted that gross profits and gross profit per unit “were softer than … expected” due to “the surge in inventory during the quarter and the resulting lower retail unit profitability.” On this news, the Company’s stock price fell 8.5% per share on March 16, 2021. On May 10, 2021, CarLotz announced its first quarter financial results for 2021, revealing that gross profits per unit fell below expectations. On this news, the stock price fell 14%, to close at $5.57 per share on May 11, 2021. The stock price continued to decline another 8%, to close at $4.12 per share on May 12, 2021.
Then, on May 26, 2021, CarLotz announced an update to its profit-sharing sourcing partner arrangement. Specifically, its “partner informed the Company that, in light of current wholesale market conditions, it has paused consignments to the Company.” This partner “accounted for more than 60% of the cars sold and sourced” during the first quarter 2021 and “less than 50% of the cars sold and approximately 25% of the cars sourced” during the second quarter 2021 to date. On this news, CarLotz’ stock price fell $0.70, or 13.4%, to close at $4.51 per share on May 26, 2021.
If you purchased shares of CarLotz, Inc. (LOTZ, LOTZW) between December 30, 2021 and May 25, 2021, you have until September 7, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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SOURCE: Robbins LLP
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PUB: 07/12/2021 05:36 PM/DISC: 07/12/2021 05:36 PM