Robbins Arroyo LLP: TrueCar, Inc. (TRUE) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of TrueCar, Inc. (NASDAQ: TRUE) has filed a federal securities fraud class action complaint in the U.S. District Court for the Central District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between May 16, 2014 and May 20, 2015. TrueCar operates as an Internet-based information, technology, and communication services company operating its platform on the TrueCar Website and TrueCar mobile applications.
TruCar’s Business Practices Violated Unfair Competition Law
According to the complaint, defendants failed to disclose that the company’s financial statements filed with the U.S. Securities and Exchange Commission during the class period contained materially false and misleading statements. Specifically, the complaint alleges that TrueCar failed to disclose that its business practices violated unfair competition and deceptive trade practice laws and that the company violated State law by acting as both dealer and broker in car sales transactions without proper licensing.
On March 9, 2015, a federal lawsuit was filed against the company alleging that car dealers have been injured by the company’s business practices, which allegedly violated unfair competition and deceptive trade practice laws. Then, on May 20, 2015, a lawsuit was filed against TrueCar in California state court alleging that the company “fail[ed] to obtain the necessary dealer’s license and autobroker’s endorsement which are required in light of the manner in which TrueCar, Inc. conducts business.” On this new, shares of TrueCar fell nearly 7% to close at $13.99 on May 20, 2015.
TrueCar Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.