Company: TrueCar, Inc.
Class Period: February 16, 2017 — November 6, 2017
Kaskela Law LLC is investigating TrueCar, Inc. (Nasdaq: TRUE) (“TrueCar” or the “Company”) on behalf of the Company’s shareholders.
A shareholder class action complaint was filed against TrueCar on behalf of investors who purchased shares of the Company’s stock between February 16, 2017 and November 6, 2017. During that time period shares of TrueCar’s stock traded as high as $21.00 per share, and currently trade below $10.00 per share.
Among other things, the complaint alleges that TrueCar and certain of the Company’s executive officers violated the federal securities laws by making a series of materially false and misleading statements to investors concerning the impact that extensive website changes were having on the Company business, operations, and financial results.
Recently the federal court presiding over the litigation denied a motion to dismiss the shareholder complaint, paving the way for litigation to proceed against the Defendants. In denying that motion, the Court stated that: “Plaintiff has adequately alleged—under both the plausibility and heightened pleading standards—that Defendants made materially false and misleading statements by making risk statements regarding TrueCar’s reliance on USAA’s website without alerting the public that the risk had already come to fruition and by falsely representing that USAA would be a key driver of unit and revenue growth in 2017.”
The investigation seeks to determine whether members of TrueCar’s Board of Directors violated the securities laws and/or otherwise failed to properly fulfill their fiduciary duties to the Company and its stockholders in connection with the above.
Stockholders who purchased shares of TrueCar’s common stock prior to February 16, 2017 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740, or by completing the form on this page, to receive additional information about this investigation and/or to discuss their legal rights and options.