Step 1
Draft
Step 2
Unite with Fellow Investors
Step 3
Choose the Best Attorney
Step 4
Provide Documents
Step 5
Follow Case Progress
Step 6
Get Payout
LOTZ.US
id: 1475
CarLotz (LOTZ) $13M Investor Settlement
Late claims are being considered for compensation, subject to approval.
$13,000,000
Cash SettlementS.D. New York
Court1:21-cv-05906
Case number10/22/2020
Class period Start05/26/2021
Class period End05/02/2025
Claim deadlineCarLotz has agreed to settle $13 million with $LOTZ investors to resolve claims that it misled them about its financial health and operations post-SPAC merger with Acamar Partners.
Outline
In 2020, CarLotz positioned itself as a disruptive used-car marketplace, emphasizing an “asset-light” business model reliant on consignment sales. However, the company later revealed excess inventory, declining gross profit per vehicle (GPU), and issues with its primary sourcing partner. These disclosures led to multiple stock declines, ultimately eroding more than 70% of $LOTZ's value. On July 8, 2021, investors filed a lawsuit, claiming CarLotz misrepresented its financial health and business operations.
Timeline
- October 22, 2020 – CarLotz announced its SPAC merger with Acamar Partners.
- March 16-18, 2021 – The company disclosed excess inventory issues, causing $LOTZ to drop 8.5%, followed by another 7.3% decline two days later.
- May 10-12, 2021 – CarLotz reported a decline in GPU, triggering a 14% drop on May 11 and an additional 8% on May 12.
- May 26, 2021 – CarLotz announced that its key sourcing partner had paused consignments, leading to a 13.4% stock drop.
- July 8, 2021 – Investors filed a lawsuit, claiming CarLotz misrepresented its inventory sourcing and financial stability.
- January 24, 2025 – CarLotz agreed to a $13 million settlement, pending court approval.
Background
In March 2021, CarLotz disclosed that it was struggling with excess inventory, slowing sales, and declining profitability, causing $LOTZ to drop 8.5%, followed by another 7.3% decline two days later.
By May 2021, the company reported that its gross profit per vehicle had fallen below expectations, triggering a 14% stock drop on May 11 and another 8% decline on May 12.
The most severe impact came on May 26, 2021, when CarLotz revealed that its largest sourcing partner had stopped consignments, raising concerns about its ability to sustain operations. This news caused $LOTZ to fall 13.4%.
As CarLotz continued to report weak financial results and declining sales, the stock decline continued, reaching over 70% drop. Following these events, investors sued CarLotz in July 2021, alleging the company misrepresented its business model and financial condition.
What Can Investors Expect Now?
CarLotz has agreed to settle $13 million with $LOTZ investors to resolve claims that it misled them about its financial health and operations post-SPAC merger with Acamar Partners.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement.
Case Type
US Securities Class Action
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.22
Filing date
07/08/2021
Plaintiffs
David Berger
Attorneys
Kahn Swick & Foti, LLC
Defendants
Michael W. Bor; Thomas W. Stoltz
Administrator
EPIQ
Court hearing date
06/10/2025
Exclusion deadline
05/20/2025
Objection deadline
05/20/2025
Attorney fee
$4,150,000
Trades matching type
FIFO
Frequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
How much will my payment be?
What is 11th Estate?
Trusted by industry leaders
Endorsed by top professionals who trust our innovative solutions to drive impactful results.