NEW YORK--(BUSINESS WIRE)--Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has filed a class action suit against TrueCar, Inc. (“TrueCar” or the “Company”) (NASDAQ: TRUE) and Michael Guthrie, that alleges violations of the Securities Exchange Act of 1934 on behalf of all persons and entities who purchased the publicly traded common stock of TrueCar from at least as early as February 16, 2017 through November 6, 2017, inclusive (the “Class Period”). The case is pending in the United States District Court for the Central District of California.
The complaint alleges that during the Class Period the Company made numerous positive statements concerning the Company’s prospects and growth, while failing to disclose negative developments related to the United Services Automobile Association (“USAA”), its largest source of revenue.
The Complaint further alleges that, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) that USAA had been planning significant changes to its website that would have a material adverse effect on the volume of purchases generated by USAA; (2) that USAA made significant changes to its website that would have a material adverse effect on the volume of purchases generated by USAA; (3) that the changes to USAA’s website maintained by TrueCar caused a material adverse effect on the volume of purchases generated by USAA; and (4) that, as a result of the foregoing, Defendants’ statements about TrueCar’s business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
On November 6, the Company disclosed that USAA had made significant changes to its website during the Class period that had a material adverse effect on the volume of purchases generated by USAA. On this news, TrueCar’s shares declined by $5.76 per share, or 35.25%, to close at $10.58 per share on November 7, 2017 on heavy trading volume.
If you purchased TrueCar common stock during the Class Period, you may move the court no later than June 1, 2018 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to review a copy of the Complaint filed in this action or discuss our investigation, please contact us by emailing jcampisi@kaplanfox.com or by calling 800-290-1952.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.