| COMPANY |
Vroom, Inc. |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
21-cv-0247 |
| JUDGE |
The Honorable Paul G. Gardephe |
| CLASS PERIOD |
June 9, 2020 - March 3, 2021 |
| SECURITY TYPE |
All Securities |
Case Background:
On March 22, 2021, the initial complaint in this securities class action was filed against Vroom, Inc. (“Vroom” or the “Company”) and certain of Vroom’s directors and officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act. This is a federal securities class action on behalf of all persons who purchased or otherwise acquired Vroom securities between November 11, 2020 through March 3, 2021, both dates inclusive (the “Class Period”).
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and. prospects. Specifically, the complaint alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Vroom had not demonstrated that it was able to control and scale growth in respect to its salesforce to meet the demand for its products; (2) that, as a result, the Company was forced to discount aged inventory to move through its retail channels or liquidated in its wholesale channels; (3) that, as a result, the ecommerce gross profit per unit was reasonably likely to decline; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Current Status of Case:
On October 4, 2021, Lead Plaintiffs filed an amended complaint (the “Amended Complaint”). On March 23, 2022, Defendants filed a Motion to Dismiss the Amended Complaint. The Motion to Dismiss has been fully briefed and is pending before the Court. This action is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.