SAN DIEGO – (COMMERCIAL THREAD) –Robbins Geller Rudman & Dowd LLP announces that buyers of CarLotz, Inc. (NASDAQ: LOTZ; LOTZW) securities between December 30, 2020 and May 25, 2021 inclusive (the “Class Period”) have until September 7, 2021 to solicit appointment as principal applicant in the Car lotz class action lawsuit. the Car lotz The class action lawsuit was filed on July 8, 2021 and accuses CarLotz and some of CarLotz’s senior executives of violating the Securities Exchange Act of 1934. Car lotz class action, Erdman v. CarLotz, Inc., No. 21-cv-05906, was filed in the Southern District of New York and is assigned to Judge Ronnie Abrams.
If you wish to serve as the principal applicant of the Car lotz class action lawsuit, please provide your information by clicking here. You can also contact Robbins Geller’s lawyer JC Sanchez by calling 800 / 449-4900 or emailing [email protected] The principal applicant’s requests for the Car lotz The class action must be filed with the court no later than September 7, 2021.
CASE ALLEGATIONS: On or around January 21, 2021, CarLotz became a public entity by merger with Acamar Partners Acquisition Corp., a special purpose acquisition company (“SPAC”) or a blank check company, incorporated for the purpose of carry out a merger, a capital stock exchange, acquisition of assets, purchase of shares, reorganization or similar business combination with one or more companies.
the Car lotz The Class Action alleges that, throughout the Class Period, the Defendants made false and misleading statements and failed to disclose that: (i) due to an increase in inventory during the second half of the year ‘Fiscal Year 2020, CarLotz was experiencing a “traffic jam” resulting in slower processing and longer days to sell; (ii) as a result, CarLotz’s gross profit per unit (“GPU”) would be adversely affected; (iii) to minimize returns to the corporate vehicle supply partner responsible for more than 60% of CarLotz’s inventory, CarLotz was offering aggressive pricing; (iv) therefore, CarLotz’s GPU forecasts were likely inflated; (v) that CarLotz’s corporate vehicle supply partner would likely suspend shipments to CarLotz due to market conditions, including increased wholesale prices; and (vi) as such, the defendants’ positive statements about CarLotz’s business, operations and prospects were materially misleading and / or lacking a reasonable basis.
On March 15, 2021, CarLotz announced its fourth quarter and full year 2020 financial results. In a related conference call, CarLotz said gross margin and GPU “were lower than. . . expected “due to” the increase in inventory during the quarter and the resulting drop in profitability of retail units. “CarLotz also reported that the additional inventory” created a bottleneck which resulted in a slower processing and longer selling days. ”On this news, CarLotz’s share price fell more than 8%.
Then, on May 10, 2021, CarLotz announced its first quarter 2021 financial results revealing that the GPU was below expectations. In particular, CarLotz expected the retail GPU to be between $ 1,300 and $ 1,500, but said $ 1,182. On this news, the CarLotz share price fell more than 14%.
Finally, on May 26, 2021, CarLotz announced an update to its Profit Sharing Sourcing Partnership Agreement. Specifically, CarLotz revealed that its “profit-sharing company vehicle supply partner has informed the company that, given current wholesale market conditions, it has suspended shipments to the company.” In addition, this partner “accounted for over 60% of cars sold and sourced” during the first quarter of 2021 and “less than 50% of cars sold and around 25% of cars sourced” during the second quarter of 2021 to date. Following this news, CarLotz’s share price fell a further 13%, hurting investors even more.
Launch of Robbins Geller Rudman & Dowd LLP a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for malpractice. Comprised of experienced litigators, investigators and forensic accountants, the PSPC task force is dedicated to eradicating and prosecuting fraud on behalf of aggrieved PSPC investors. The increase in blank check financing presents unique risks for investors. Robbins Geller Rudman & Dowd LLP’s SPAC Working Group represents the forefront of integrity, honesty and fairness in this rapidly developing area of investment.
THE MAIN COMPLAINANT PROCESS: The Private Securities Litigation Reform Act of 1995 allows any investor who purchased CarLotz securities during the Recourse Period to seek appointment as principal plaintiff in the Car lotz class action lawsuit. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class which is also typical and adequate of the putative class. A lead applicant acts on behalf of all other class members by ordering Car lotz class action lawsuit. The lead plaintiff can choose a law firm of their choice to litigate the Car lotz class action lawsuit. The ability of an investor to participate in any potential future recovery of the Car lotz the class action does not depend on the function of principal plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm representing investors in securities class actions. Robbins Geller lawyers have secured many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $ 7.2 billion – in In re Enron Corp. Dry. Litigation. The 2020 ISS Securities Class Action Services Top 50 report ranked Robbins Geller # 1 for recovering $ 1.6 billion from investors last year, more than double the amount recovered by any other company from securities claimants. Please visit https://www.rgrdlaw.com/firm.html for more information.
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