RumbleOn stock drops toward 8th-straight loss after disclosure of investigation into former CEO Chesrown
Shares of RumbleOn Inc.
RMBL,
dropped 7.3% toward an eighth-straight loss in premarket trading Friday, after the motor vehicle dealer and ecommerce platform disclosed it was investigating its former Chief Executive Officer Marshall Chesrown. The company said in an 8-K filing with the Securities and Exchange Commission late Thursday that co-Founder Chesrown said on June 11 he was resigning effective June 15, after about seven years in the CEO role, but continue to serve on the company’s board of directors. “Before his departure, the company was advised of certain allegations surrounding Mr. Chesrown’s use of company resources,” the company said in a statement. The company said it has hired independent counsel to assist in an investigation, which is ongoing. On Friday, the company said it appointed “major shareholder” Mark Tkach as interim CEO. The stock, which had tumbled 21.0% over the past seven sessions, has still rallied 20.2% over the past three months through Thursday, while the S&P 500
SPX,
has gained 11.8%.
