Vroom Pandemic Claims Draw Shareholder Suit Against Leaders

Vroom Inc.’s directors and executives failed to disclose problems with its sales and support staff that negatively impacted profitability before the stock’s worst selloff on record, a shareholder derivative suit says.

The company invested tens of millions of dollars into improving its sales support and logistics networks, but impaired its short-term profitability, according to the complaint filed Wednesday in US District Court for the District of Delaware.

Former CEO Paul Hennessy, who is named as a defendant, said in an August 2020 press release that the company would be “well positioned to navigate the challenges presented by the Covid-19 crisis ...