Lawsuit filed for Investors in shares of CarLotz, Inc. (NASDAQ: LOTZ)

An investor, who purchased shares of CarLotz, Inc. (NASDAQ: LOTZ), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by CarLotz, Inc..

Investors in shares of CarLotz, Inc. (NASDAQ: LOTZ) have certain options and for certain investors are short and strict deadlines running. Deadline: September 07, 2021. NASDAQ: LOTZ investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Richmond, VA based CarLotz, Inc. operates as a consignment-to-retail used vehicle marketplace that provides its corporate vehicle sourcing partners and retail sellers of used vehicles.

On March 15, 2021, CarLotz, Inc. announced its fourth quarter and full year 2020 financial results. During a related conference call, the Company stated that gross profit and gross profit per unit (“GPU”) “were softer than . . . expected” due to “the surge in inventory during the quarter and the resulting lower retail unit profitability.” CarLotz, Inc. also reported that the additional inventory “created a logjam that resulted in slower processing and higher days to sell.”

On May 10, 2021, CarLotz, Inc. announced first quarter 2021 results, reporting amongst other things, GAAP earnings per share of -$0.15, missing consensus estimates of $0.01.
Then, on May 26, 2021, CarLotz, Inc. announced that its profit-sharing corporate vehicle sourcing partner had “paused consignments” to the Company. This partner accounted for more than 60% of cars sold and sourced by CarLotz.

Shares of CarLotz, Inc. (NASDAQ: LOTZ) declined from $12.7 per share on January 21, 2021, to as $4.06 per share on May 26, 2021.

The plaintiff claims that between December 30, 2020 and May 25, 2021, the Defendants made material misrepresentations concerning the following that, due to a surge in inventory during the second half of fiscal 2020, CarLotz was experiencing a “logjam” resulting in slower processing and higher days to sell that, as a result, the Company’s gross profit per unit would be negatively impacted that, to minimize returns to the corporate vehicle sourcing partner responsible for more than 60% of CarLotz’s inventory, the Company was offering aggressive pricing, that, as a result, CarLotz’s gross profit per unit forecast was likely inflated, that this Company’s corporate vehicle sourcing partner would likely pause consignments to the Company due to market conditions, including increasing wholesale prices, and that as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.

Those who purchased shares of CarLotz, Inc. (NASDAQ: LOTZ) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.