RM LAW, P.C. announces an investigation on behalf of TrueCar, Inc. (“TrueCar” or the “Company”) (NASDAQ: TRUE) investors concerning the Company and its officers’ possible violations of federal securities laws.
If you purchased shares of TrueCar and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or All Casesyour rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
Our investigation concerns whether members of TrueCar’s board of directors made false and/or misleading statements and/or failed to disclose that: (1) the largest source of TrueCar’s revenue, the United States Automobile Association (“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) USAA made significant changes to its website that would have a material adverse effect on the volume of purchases generated by USAA; (3) the changes to USAA’s website maintained by TrueCar caused a material adverse effect on the volume of purchases generated by USAA; and (4) as a result, statements about TrueCar’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
On November 6, 2017, TrueCar issued its third quarter 2017 financial results and reported third quarter revenue of only $82.4 million. During the conference call that followed, the Company attributed the unexpected sales miss, in part, to the fact that its channel partner USAA had undergone a significant website redesign, which impacted traffic and close rates. Following this news, TrueCar’s shares fell more than 35% to close at $10.58 per share on November 7, 2017.