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This case was last updated from PACER on 05/23/2021 at 07:51:48 (UTC).

Holbrook v. Vroom, Inc. et al

Case Summary

On March 24, 2021, Charles D. Holbrook (“Plaintiff”) individually and on behalf of all others similarly situated, represented by Samuel Howard Rudman of Robins Geller Rudman & Dowd LLP brought a class action lawsuit against Vroom Inc., (“Vroom” or the “Company”) Paul J. Hennessy (“Hennessy”) and David K. Jones (“Jones”) (collectively, “Defendants”) seeking compensatory damages and injunctive/equitable reliefs for allegedly making materially misleading or untrue statements. This case was filed in U.S. District Court in the Southern District of New York with Judge Paul G. Gardephe presiding.

In its complaint, Plaintiff has alleged that “In addition to the materially false and misleading statements, defendants also violated their affirmative obligations to provide certain material information in SEC filings as required by applicable SEC rules and regulations. Specifically, Item 303 of SEC Regulation S-K, 17 C.F.R. §229.303 (“Item 303”), required defendants to “[d]escribe any known trends or uncertainties that have had or that are reasonably likely to have a materially favourable or unfavourable impact on net sales or revenues or income from continuing operations.””

Furthermore, the Plaintiff has alleged that “defendants acted with scienter in that defendants knew, or recklessly disregarded, that the public documents and statements they issued and disseminated to the investing public in the name of the Company, or in their own name, during the Class Period were materially false and misleading. Defendants knowingly and substantially participated or acquiesced in the issuance or dissemination of such statements and documents as primary violations of the federal securities laws. Defendants, by virtue of their receipt of information reflecting the true facts regarding Vroom, and their control over and/or receipt and/or modification of Vroom’s allegedly materially misleading misstatements, were active and culpable participants in the fraudulent scheme alleged herein.”

There are two claims for relief laid down by the Plaintiff. The first claim is for the alleged violation of §10(b) of the Exchange Act and Rule 10b-5 Promulgated thereunder against all Defendants. Further, as a direct and proximate result of defendants’ wrongful conduct, plaintiff and the other members of the Class suffered damages in connection with their purchases of Vroom common stock during the Class Period.

The second claim is for the alleged violation of §20(a) of the Exchange Act Against the Individual Defendant. Because of their positions as officers and/or directors of Vroom, defendants Hennessy and Jones had the power and authority to cause Vroom and its employees to engage in the wrongful conduct complained of herein. Vroom controlled defendants Hennessy and Jones and all of its employees. By reason of such conduct, the Individual Defendants are liable pursuant to §20(a) of the Exchange Act.

In its prayer for relief, Plaintiff individually and on behalf of all others similarly situation has requested the Court to pass an order certifying the Classes under Rule 23 of the Federal Rules of Civil Procedure; naming Plaintiff Kadin as representatives of the Classes and finding an order in favour of the aforementioned all the counts asserted. Plaintiff has further requested the Court to award all such compensatory and punitive damages, along with injunctive and other equitable relief as the Court may deem fit.

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-02551

  • Filing Date:

    03/24/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

  • Court:

    U.S. District Courts

  • Courthouse:

    New York Southern District

Judge Details

Presiding Judge

Paul G. Gardephe

 

Party Details

Plaintiff

Charles D. Holbrook

Petitioner

Rhondda Cynon Taf Pension Fund

Defendants

David K. Jones

Vroom, Inc.

Paul J. Hennessy

Attorney/Law Firm Details

Plaintiff Attorney

Samuel Howard Rudman

Attorney at Robbins Geller Rudman & Dowd LLP (LI)

58 South Service Road, Suite 200

Melville, NY 11747

Petitioner Attorney

Michael Arthur Toomey

Attorney at Barrack, Rodos & Bacine

425 Park Ave.

New York, NY 10022

Defendant Attorneys

Jeff G. Hammel

Attorney at Latham & Watkins

1271 Avenue Of The Americas

New York, NY 10020

Michele D. Johnson

Attorney at Latham & Watkins LLP

650 Town Center Drive, Ste 2000

Costa Mesa, CA 92626

Jason Craig Hegt

Attorney at Latham & Watkins

1271 Avenue Of The Americas

New York, NY 10020

 

Court Documents

#15

(#15) MEMORANDUM OF LAW in Support re: #14 MOTION to Consolidate Cases 1:21-cv-2477; 1:21-cv-2551; 1:21-cv-3296 . MOTION to Appoint Rhondda Cynon Taf Pension Fund to serve as lead plaintiff(s) . MOTION to Appoint Counsel Barrack, Rodos & Bacine. . Document filed by Rhondda Cynon Taf Pension Fund..(Toomey, Michael) (Entered: 05/21/2021)

#13

(#13) NOTICE OF PRETRIAL CONFERENCE: Initial Conference set for 6/25/2021 at 11:15 AM in Courtroom 705, 40 Centre Street, New York, NY 10007 before Judge Paul G. Gardephe. (Signed by Judge Paul G. Gardephe on 5/5/2021) (ks) (Entered: 05/05/2021)

#12

(#12) NOTICE OF CHANGE OF ADDRESS by Jason Craig Hegt on behalf of Paul J. Hennessy, David K. Jones, Vroom, Inc.. New Address: Latham & Watkins LLP, 1271 Avenue of the Americas, New York, NY, United States 10020, 212.906.1200..(Hegt, Jason) (Entered: 05/03/2021)

#11

(#11) NOTICE OF CHANGE OF ADDRESS by Jeff G. Hammel on behalf of Paul J. Hennessy, David K. Jones, Vroom, Inc.. New Address: Latham & Watkins LLP, 1271 Avenue of the Americas, New York, NY, United States 10020, 212.906.1200..(Hammel, Jeff) (Entered: 05/03/2021)

#9

No Description Available

#8

No Description Available

#7

No Description Available

#6

(#6) NOTICE OF APPEARANCE by Jeff G. Hammel on behalf of Paul J. Hennessy, David K. Jones, Vroom, Inc...(Hammel, Jeff) (Entered: 04/09/2021)

#5

(#5) ELECTRONIC SUMMONS ISSUED as to Paul J. Hennessy, David K. Jones, Vroom, Inc...(dnh) (Entered: 03/25/2021)

#4

(#4) STATEMENT OF RELATEDNESS re: that this action be filed as related to 21-cv-02477 (PGG). Document filed by Charles D. Holbrook..(Rudman, Samuel) (Entered: 03/24/2021)

#3

(#3) REQUEST FOR ISSUANCE OF SUMMONS as to Vroom, Inc., Paul J. Hennessy, David K. Jones, re: #1 Complaint. Document filed by Charles D. Holbrook..(Rudman, Samuel) (Entered: 03/24/2021)

#2

(#2) CIVIL COVER SHEET filed..(Rudman, Samuel) (Entered: 03/24/2021)

#1

(#3) REQUEST FOR ISSUANCE OF SUMMONS as to Vroom, Inc., Paul J. Hennessy, David K. Jones, re: #1 Complaint. Document filed by Charles D. Holbrook..(Rudman, Samuel) (Entered: 03/24/2021)

4 More Documents Available
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Docket Entries

  • 05/21/2021
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  • Docket(#16) DECLARATION of Michael A. Toomey in Support re: #14 MOTION to Consolidate Cases 1:21-cv-2477; 1:21-cv-2551; 1:21-cv-3296 . MOTION to Appoint Rhondda Cynon Taf Pension Fund to serve as lead plaintiff(s) . MOTION to Appoint Counsel Barrack, Rodos & Bacine.. Document filed by Rhondda Cynon Taf Pension Fund. (Attachments: #1 Exhibit 1, #2 Exhibit 2, #3 Exhibit 3).(Toomey, Michael) (Entered: 05/21/2021)

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  • 05/21/2021
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  • Docket(#15) MEMORANDUM OF LAW in Support re: #14 MOTION to Consolidate Cases 1:21-cv-2477; 1:21-cv-2551; 1:21-cv-3296 . MOTION to Appoint Rhondda Cynon Taf Pension Fund to serve as lead plaintiff(s) . MOTION to Appoint Counsel Barrack, Rodos & Bacine. . Document filed by Rhondda Cynon Taf Pension Fund..(Toomey, Michael) (Entered: 05/21/2021)

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  • 05/21/2021
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  • Docket(#14) MOTION to Consolidate Cases 1:21-cv-2477; 1:21-cv-2551; 1:21-cv-3296 ., MOTION to Appoint Rhondda Cynon Taf Pension Fund to serve as lead plaintiff(s) ., MOTION to Appoint Counsel Barrack, Rodos & Bacine. Document filed by Rhondda Cynon Taf Pension Fund. (Attachments: #1 Text of Proposed Order).(Toomey, Michael) (Entered: 05/21/2021)

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  • 05/05/2021
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  • Docket(#13) NOTICE OF PRETRIAL CONFERENCE: Initial Conference set for 6/25/2021 at 11:15 AM in Courtroom 705, 40 Centre Street, New York, NY 10007 before Judge Paul G. Gardephe. (Signed by Judge Paul G. Gardephe on 5/5/2021) (ks) (Entered: 05/05/2021)

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  • 05/03/2021
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  • Docket(#12) NOTICE OF CHANGE OF ADDRESS by Jason Craig Hegt on behalf of Paul J. Hennessy, David K. Jones, Vroom, Inc.. New Address: Latham & Watkins LLP, 1271 Avenue of the Americas, New York, NY, United States 10020, 212.906.1200..(Hegt, Jason) (Entered: 05/03/2021)

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  • 05/03/2021
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  • Docket(#11) NOTICE OF CHANGE OF ADDRESS by Jeff G. Hammel on behalf of Paul J. Hennessy, David K. Jones, Vroom, Inc.. New Address: Latham & Watkins LLP, 1271 Avenue of the Americas, New York, NY, United States 10020, 212.906.1200..(Hammel, Jeff) (Entered: 05/03/2021)

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  • 04/29/2021
  • DocketMagistrate Judge Robert W. Lehrburger is so designated. Pursuant to 28 U.S.C. Section 636(c) and Fed. R. Civ. P. 73(b)(1) parties are notified that they may consent to proceed before a United States Magistrate Judge. Parties who wish to consent may access the necessary form at the following link: #https://nysd.uscourts.gov/sites/default/files/2018-06/AO-3.pdf. (wb) (Entered: 04/29/2021)

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  • 04/29/2021
  • DocketNOTICE OF CASE REASSIGNMENT to Judge Paul G. Gardephe. Judge Unassigned is no longer assigned to the case..(wb) (Entered: 04/29/2021)

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  • 04/29/2021
  • DocketCASE ACCEPTED AS RELATED. Create association to 1:21-cv-02477-PGG. Notice of Assignment to follow. (wb) (Entered: 04/29/2021)

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  • 04/12/2021
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  • Docket>>>NOTICE REGARDING PRO HAC VICE MOTION. Regarding Document No. #10 MOTION for Michele D. Johnson to Appear Pro Hac Vice . Filing fee $ 200.00, receipt number ANYSDC-24379626. Motion and supporting papers to be reviewed by Clerk's Office staff.. The document has been reviewed and there are no deficiencies. (vba) (Entered: 04/12/2021)

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4 More Docket Entries
  • 04/09/2021
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  • Docket(#6) NOTICE OF APPEARANCE by Jeff G. Hammel on behalf of Paul J. Hennessy, David K. Jones, Vroom, Inc...(Hammel, Jeff) (Entered: 04/09/2021)

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  • 03/25/2021
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  • Docket(#5) ELECTRONIC SUMMONS ISSUED as to Paul J. Hennessy, David K. Jones, Vroom, Inc...(dnh) (Entered: 03/25/2021)

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  • 03/25/2021
  • DocketCASE REFERRED TO Judge Paul G. Gardephe as possibly related to 1:21-cv-02477-PGG. (dnh) (Entered: 03/25/2021)

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  • 03/25/2021
  • DocketCase Designated ECF. (dnh) (Entered: 03/25/2021)

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  • 03/25/2021
  • DocketCASE OPENING INITIAL ASSIGNMENT NOTICE: The above-entitled action is assigned to Judge Unassigned. .(dnh) (Entered: 03/25/2021)

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  • 03/25/2021
  • Docket***NOTICE TO ATTORNEY REGARDING PARTY MODIFICATION. Notice to attorney Samuel Howard Rudman. The party information for the following party/parties has been modified: Charles D. Holbrook. The information for the party/parties has been modified for the following reason/reasons: party text was omitted. (dnh) (Entered: 03/25/2021)

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  • 03/24/2021
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  • Docket(#4) STATEMENT OF RELATEDNESS re: that this action be filed as related to 21-cv-02477 (PGG). Document filed by Charles D. Holbrook..(Rudman, Samuel) (Entered: 03/24/2021)

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  • 03/24/2021
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  • Docket(#3) REQUEST FOR ISSUANCE OF SUMMONS as to Vroom, Inc., Paul J. Hennessy, David K. Jones, re: #1 Complaint. Document filed by Charles D. Holbrook..(Rudman, Samuel) (Entered: 03/24/2021)

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  • 03/24/2021
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  • Docket(#2) CIVIL COVER SHEET filed..(Rudman, Samuel) (Entered: 03/24/2021)

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  • 03/24/2021
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  • Docket(#1) COMPLAINT against Paul J. Hennessy, David K. Jones, Vroom, Inc.. (Filing Fee $ 402.00, Receipt Number ANYSDC-24301920)Document filed by Charles D. Holbrook..(Rudman, Samuel) (Entered: 03/24/2021)

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