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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

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

July 9, 2021 GMT

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

On May 26, 2021, the Company’s stock price fell 13.4% after the consignment-to-retail used vehicle marketplace operator announced its profit-sharing corporate vehicle sourcing partner had paused consignments to the Company. The Company cut its year guidance as a result of the current business climate, as impacted by the lack of vehicles from this profit-sharing account, coupled with the unpredictable timeline of the chip shortage for new cars and its impact on the wholesale and retail automotive markets.

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This announcement follows the release of disappointing financial results for the first quarter of 2021, as revealed in a May 10 press release issued by the Company. CarLotz stock dropped more than 20% over two days when it reported first quarter results but did not provide forecasts for gross profit per unit specifically for the second quarter. William Blair analyst Sharon Zackfia said in a report that the omission will cause more “investor angst” about the visibility on its progress toward its full-year targets. While management reiterated that GPU has improved significantly on a sequential basis, CarLotz has missed its original GPU targets for both the fourth and first quarters. Zackfia said CarLotz is also seeing constrained inventory levels due to rapidly rising wholesale prices, which has led to some commercial consignors liquidating via wholesale instead of consignment.

Investors who purchased or otherwise acquired shares of CarLotz during the Class Period should contact the Firm prior to the September 7, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.