SAN DIEGO & SANTA MONICA, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of TrueCar, Inc. (NasdaqGS: TRUE) breached their fiduciary duties to shareholders. TrueCar, together with its subsidiaries, is an Internet-based information, technology, and communication services company in the United States.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/truecar-inc-apr-2018
TrueCar Accused of Downplaying Negative Impact on Its Largest Source of Revenue
Purchasers of TrueCar filed a securities class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between February 16, 2017 and November 6, 2017. TrueCar's largest source of revenue comes from the United Services Automobile Association ("USAA"). The complaint alleges that TrueCar made positive statements about its prospects and growth while failing to disclose negative developments related to USAA's changes to the website maintained by TrueCar. On November 6, 2017, TrueCar disclosed that the USAA Car Buying experience introduced new steps, questions, and content related to vehicle affordability before the member was linked to TrueCar's Car Buying Service, which had a negative effect on the volume of purchases generated by USAA. On this news, TrueCar's shares fell over 35% to close at $10.58 per share on November 7, 2017, and have since fallen even lower to close at $9.33 on April 5, 2018.
TrueCar Shareholders Have Legal Options
If you would like more information about your rights and potential remedies contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP, a nationally recognized leader in shareholder rights law, represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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