NEW YORK, July 28, 2021 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of those who acquired CarLotz, Inc. ("CarLotz" or the "Company") (NASDAQ: LOTZ) securities from December 30, 2020 through May 25, 2021, inclusive (the "Class Period").
All investors who purchased CarLotz, Inc. and incurred losses are urged to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses in the shares of CarLotz, Inc., you may, no later than September 7, 2021, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in CarLotz, Inc.
On March 15, 2021, CarLotz 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 also reported that the additional inventory "created a logjam that resulted in slower processing and higher days to sell." On this news, the Company's stock price declined by $0.79 per share, closing at $8.45 per share on March 16, 2021.
Then, on May 10, 2021, after the market closed, CarLotz announced its first quarter 2021 financial results revealing that the GPU fell below expectations. The Company had expected retail GPU between $1,300 and $1,500 but only reported $1,182. On this news, the Company's stock price declined an additional $0.94 per share, or approximately 14.4%, to close at $5.57 per share on May 11, 2021.
Subsequently, on May 26, 2021, before the market opened, CarLotz announced an update to its profit-sharing sourcing partner arrangement. Specifically, CarLotz stated that its "profit-sharing corporate vehicle sourcing partner informed the Company that, in light of current wholesale
market conditions, it has paused consignments to the Company." This particular partner "accounted for more than 60% of the cars sold and sourced" during the first quarter 2021 and "less than 50% of the cars sold and approximately 25% of cars sourced" during the second quarter of 2021 to date.
On this news, the Company's stock price declined by $0.70 per share, or approximately 13.4%, to close at $4.51 per share on May 26, 2021.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at [email protected], or visit our website at www.whafh.com.
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected], [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774
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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP