VROOM DEADLINE ALERT
Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Vroom, Inc. To Contact Him Directly To Discuss Their Options
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Vroom, Inc. (“Vroom” or the “Company”) (NASDAQ:VRM) and reminds investors of the May 21, 2021 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $50,000 investing in Vroom stock or options between June 9, 2020 and March 3, 2021 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also fill out the form below for additional information.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Delaware, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) 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; (2) 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; (3) Vroom had been forced to mark down and liquidate existing inventory at fire sale prices; and (4) 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.
Specifically, 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.
Vroom, Inc. (VRM)
* The submission of this form does not create an attorney-client relationship.
Filed on 03/26/2021
Lead Plaintiff Deadline 05/21/2021
685 Third Avenue 26th Floor
10017 New York, New York
Phone (212) 983-9330
Fax (212) 983-9331
Robert W. Killorin email@example.com Phone (404) 847-0617 Fax (404) 506-9534
James M. Wilson, Jr. firstname.lastname@example.org Phone (212) 983-9330 Fax (212) 983-9331