Safirstein Metcalf LLP announces that a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of persons or entities who purchased or otherwise acquired securities of TrueCar, Inc. (“TrueCar”) (NASDAQ:TRUE) between February 16, 2017 and November 6, 2017 (“Class Period”).
If you purchased or acquired TrueCar securities during the class period, and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP at 1-800-221-0015, or email info@SafirsteinMetcalf.com
If you wish to serve as lead plaintiff, you must move the Court no later than June 1, 2018. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
The complaint alleges that throughout the class period Defendants issued materially false and/or misleading statements and/or failed to disclose that: (1) that the United Services 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) 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, 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.