NEW YORK, NY / ACCESSWIRE / June 8, 2021 / Labaton Sucharow LLP, a nationally ranked and award-winning shareholder rights law firm, is investigating potential securities violations and breach of fiduciary duty claims against CarLotz, Inc. ('CarLotz' or the 'Company') (NASDAQ:LOTZ). Investors are encouraged to contact the firm.
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.
If you currently own stock or options in CarLotz and want to receive additional information and protect your investments free of charge, please contact David J. Schwartz using the toll-free number (800) 321-0476 or via email at [email protected].
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 http://www.labaton.com.
David J. Schwartz
SOURCE: Labaton Sucharow LLP