March 28, 2025
Willkie was recognized in The AmLaw Litigation Daily with a Litigator of the Week “Shout Out” for obtaining the dismissal of a securities class action lawsuit in the United States District Court for the Southern District of New York relating to the June 2020 IPO and follow on secondary offering of Vroom, Inc., an online automobile retail platform. Willkie represented the underwriters in the IPO and follow on offering.
The lawsuit alleged that Vroom misstated the company’s “true financial prospects and operating condition” in the lead-up to the IPO, particularly by concealing that Vroom was “plagued by a lack of adequate sales and support staff, resulting in degraded customer experiences, lost sales opportunities, and liquidation of inventory at fire sale prices.” The suit brought claims against Vroom, certain of its directors and officers, as well as the underwriters of the IPO and secondary offerings.
U.S. District Judge Judge Gardephe granted the motion to dismiss, finding that “Plaintiffs’ core factual allegation . . . is speculative,” and that many of the challenged statements were literally true, protected risk disclosures, inactionable opinions, and/or puffery. Read more about the case here.
The Willkie team was led by partners Todd Cosenza and Charles Dean Cording, along with associate Khara John.
