U.S. District Judge Arun Subramanian has announced his intent to grant final approval to a $13 million settlement agreement between CarLotz, Inc. and a class of investors who alleged the company and Acamar Partners Acquisition Corp. made misleading statements about CarLotz’s profitability ahead of its public debut through a special purpose acquisition company (SPAC) merger.
The CarLotz $13M Investor Settlement Final Approval follows preliminary approval granted in January 2025 and addresses two objections, both of which the judge indicated he would overrule. In his statement, Judge Subramanian noted that the investors’ legal team thoroughly refuted the objections raised across 50,000 submitted claims.
The settlement concludes nearly four years of litigation, during which plaintiffs claimed they were misled about CarLotz’s financial health and vehicle sourcing practices, which affected their support of the 2021 merger with Acamar Partners. The deal originally valued CarLotz at $827 million.
Lead counsel for the investors, Kim E. Miller and Lewis S. Kahn of Kahn Swick & Foti LLC, will receive one-third of the settlement—approximately $4.3 million in attorney fees—along with $155,000 in reimbursed litigation expenses. Two named plaintiffs will also receive service awards of $10,000 and $5,000.
According to court documents, the settlement reflects approximately 10% of the estimated $126 million in maximum recoverable damages. It follows a third amended complaint filed in May 2023, after an earlier version was dismissed in March.
Investors alleged that CarLotz’s public statements leading up to the merger misrepresented the diversity of its vehicle sourcing, revealing later that 60% of its inventory came from a single partner—contrary to claims of a “deep pool” of suppliers. They also cited later disclosures showing that CarLotz had engaged in aggressive pricing and wholesale liquidation of excess inventory, significantly reducing gross profits.
The case, In re: CarLotz Inc. Securities Litigation, case number 1:21-cv-05906, is being heard in the U.S. District Court for the Southern District of New York.
Legal representation for CarLotz and Acamar is provided by Nicholas Angelo Caselli and Mary Jane Eaton of Freshfields LLP.
