Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into TrueCar, Inc. (NasdaqGS: TRUE).
On November 6, 2017, TrueCar disclosed that USAA, its most significant marketing partner, had made substantial changes to its website that had a material adverse effect on TrueCar’s sales. Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information, violating federal securities laws. Recently, the court refused to dismiss the case, finding that the plaintiff had sufficiently alleged that TrueCar “made materially false and misleading statements by making risk statements regarding TrueCar’s reliance on USAA’s website without alerting the public that the risk had already come to fruition”; “knew about USAA’s website redesign and its impact as of January 2017,” and that “[former CFO] Guthrie and [CAO] Pierantoni sold TrueCar stock in sales that were suspicious….”
On February 15, 2019, the Company disclosed disappointing quarterly financial results including a decrease in net income of $2.2M, a 10% drop in average monthly unique visitors for the quarter, and weak first-quarter and full year guidance.
KSF’s investigation is focusing on whether TrueCar’s officers and/or directors breached their fiduciary duties to TrueCar’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of TrueCar shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (email@example.com), or click here.