NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against CarLotz, Inc. (NASDAQ: LOTZ) on behalf of CarLotz stockholders. Our investigation concerns whether CarLotz has violated the federal securities laws and/or engaged in other unlawful business practices.
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On May 26, 2021, CarLotz was down almost 20% in pre-market trading after the consignment-to-retail used vehicle marketplace operator said its profit-sharing corporate vehicle sourcing partner has paused consignments to the Company. The Company has 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 latest 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.
On this news, CarLotz’s stock price fell $0.94 per share, or 14.44%, to close at $5.57 per share on May 11, 2021, thereby injuring investors.
If you purchased or otherwise acquired CarLotz shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
