NEW YORK, NY / ACCESSWIRE / July 27, 2021 / Labaton Sucharow LLP, a nationally ranked and award-winning shareholder rights law firm, announces that a securities class action has been filed on behalf of persons and entities that purchased or otherwise acquired CarLotz, Inc. ('CarLotz' or the 'Company') (NASDAQ:LOTZ) securities between December 30, 2020, and May 25, 2021, inclusive (the 'Class Period'). CarLotz investors are encouraged to contact the firm. Those wishing to serve as lead plaintiff have until September 7, 2021, to file a motion.
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.
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.
If you purchased CarLotz securities during the Class Period, you have until September 7, 2021, to file a motion to serve as lead plaintiff. If you purchased CarLotz securities during the Class Period and wish to receive additional information or learn how to protect your investments free of charge, please contact David J. Schwartz using the toll-free number (800) 321-0476 or via email at firstname.lastname@example.org.
About the Firm
Labaton Sucharow LLP is one of the world's leading complex litigation firms representing clients in securities, antitrust, corporate governance and shareholder rights, and consumer cybersecurity and data privacy litigation. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at www.labaton.com.
David J. Schwartz
SOURCE: Labaton Sucharow LLP