Vroom Avoids Class Action Alleging Fraudulent IPO Sales Claims

Vroom Inc. won a dismissal of a proposed class action alleging the used car e-commerce platform made misleading statements in an initial public offering during the Covid-19 pandemic.

Vroom shareholders failed to show that the statements were false or misleading, said Judge Paul G. Gardephe Tuesday for the US District Court for the Southern District of New York. Other statements the company made during the proposed class period from June 9, 2020, to March 31, 2021, were either opinion or puffery, he said, dismissing the suit in its entirety.

Vroom has faced several securities fraud lawsuits, including one filed in ...