SAN DIEGO--(BUSINESS WIRE)--Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating potential violations of the federal securities laws by TrueCar, Inc. (NASDAQ: TRUE) and certain of its officers. TrueCar operates as an Internet-based information, technology and communication services company.
Specifically, Johnson & Weaver’s investigation seeks to determine whether certain statements regarding the Company’s business and prospects were false and misleading when made.
On May 16, 2014, TrueCar stock opened for trading at $9.70. The same day, the Company sold 7.75 million shares of stock in its initial public stock offering (“IPO”), reaching a high of $10.76 per share that day. Since its May IPO and a secondary offering on November 12, 2014, TrueCar has been the target of several lawsuits. In one suit, over 100 franchises filed a complaint alleging that TrueCar falsely advertised that consumers could buy vehicles without haggling or price negotiations.
Additionally, on July 23, 2015, TrueCar announced its preliminary results for the second quarter, projecting revenue to be between $65 million and $65.3 million, lower than analysts’ estimates. In the same announcement, TrueCar lowered its guidance for the full year, following disappointing first quarter results that also missed analysts’ expectations. Then on August 10, 2015, the Company's founder, Scott Painter, resigned as TrueCar's CEO. Since the May 16, 2014 IPO, TrueCar's stock has plummeted, closing at $4.79 on August 21, 2015; 80% lower than its 52 week trading high of $25.
If you purchased shares before November 2014 or pursuant to the secondary offering on November 12, 2014, and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker (email@example.com) by email or by phone at 619-814-4471. If emailing, please include a phone number where you can be reached.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.