Shareholder rights law firm Robbins Arroyo LLP announces TrueCar, Inc. (NasdaqGS: TRUE) may face damages caused by a pending securities class action lawsuit. TrueCar is an automotive pricing and information website for new and used car buyers and dealers.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/truecar-inc-feb-2019/
Shareholder Class Action Alleging Defendants Made Materially False and Misleading Statements Survives Motion to Dismiss
Investors filed a class action complaint against TrueCar for alleged violations of the Securities Exchange Act of 1934. According to the complaint, 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, which had a negative effect on the volume of purchases generated by USAA. On this news, TrueCar’s shares fell over 35%, and currently trade even lower at $9.76 per share. On February 5, 2019, U.S. District Court Judge Stephen V. Wilson denied defendant’s motion to dismiss plaintiff’s complaint, paving the way for litigation to proceed.
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TrueCar Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, [email protected], or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm 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. Sign up for our FREE portfolio monitoring service, Stock Watch.
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