A TrueCar class action lawsuit has been filed on behalf of individuals who invested in the digital automotive marketplace after the company allegedly deceived investors into purchasing stocks at artificially inflated prices. If you invested in TrueCar, Inc. between February 16, 2017 and November 6, 2017, you may be able to pursue a claim with the help of a securities fraud attorney.
For more information, contact Attorney Group today. Our consultations are free, confidential and without any obligation on your part. We can help answer your questions, and if you choose to pursue a claim we can connect you with an affiliated securities fraud attorney who can assist you throughout the legal process.
TrueCar Stock Prices Fall 35 Percent After Financial Results Revealed
According to a class action complaint filed in March 2018, TrueCar repeatedly made misleading public statements and withheld critical information about significant developments affecting the company’s largest source of revenue, United Services Automobile Association (USAA), between February 16, 2017 and November 6, 2017.
Plaintiffs in the class action claim that TrueCar, Inc. and other defendants made materially false and/or misleading statements and/or failed to disclose that:
- 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;
- USAA made significant changes to its website that would have a material adverse effect on the volume of purchases generated by USAA;
- the changes to USAA’s website maintained by TrueCar caused a material adverse effect on the volume of purchases generated by USAA; and
- as a result, defendants’ statements about TrueCar’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
The complaint also states that TrueCar, Inc. made public statements about future prospects and the growth of the company, allegedly causing the company’s stock to be traded at artificially inflated prices. Once the company reported its third quarter 2017 financial results, TrueCar’s stock price fell by over 35 percent.
Impact on TrueCar’s Stock Prices as a Result of the Company’s Alleged Fraud
| Closing stock price prior to disclosures: | Closing stock price the trading day after disclosures: | One day stock price decrease as a result of disclosures (percentage): |
|---|---|---|
| $16.34 | $10.58 | 35.25 percent |
How a TrueCar Class Action Lawsuit Can Help
Individuals who invested money and purchased stock in TrueCar, Inc. between February 16, 2017, and November 6, 2017, may be eligible to pursue damages and recover their losses through a TrueCar class action lawsuit and are encouraged to seek the advice of an experienced securities fraud attorney to learn more about their rights and remedies.
The Time You Have to Pursue a Claim is Limited. Contact Us Today.
For more information, contact Attorney Group. You can fill out the form on this page or contact us by phone or email.
After you contact us, an attorney will follow up to answer questions that you might have. There is no cost or obligation to speak with us, and any information you provide will be kept confidential.
Please note that the law limits the time you have to pursue a claim or file a lawsuit for an injury. If you think you have a case, you should not delay taking action. Please also note, the deadline to file for lead plaintiff in this class action is June 1, 2018. You must file an application to be appointed lead plaintiff to this deadline in order to be considered by the court.
