Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against TrueCar, Inc. (TRUE)


NEW YORK, May 28, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the securities of TrueCar, Inc. (“TrueCar” or the “Company”) (Nasdaq:TRUE) between May 16, 2014 and May 20, 2015, inclusive (the “Class Period”), alleging violations of the federal securities laws under the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

TrueCar’s business model is an Internet-based information, technology, and communication services company.  The Company operates its platform on the TrueCar Website and TrueCar mobile applications.  It also customizes and operates its platform for its group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for large enterprises.

The Complaint alleges that defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company’s business operations and performance.  Specifically, during the Class Period, the Complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (i) TrueCar’s business practices violated unfair competition and deceptive trade practice laws; (ii) TrueCar acts as a dealer and broker in car sales transactions without proper licensing, in violation of various States’ laws that govern car sales; and (iii) as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times.

On March 9, 2015, a complaint was filed in Federal Court against TrueCar alleging that car dealers were injured by the Company’s business practices which violated unfair competition and deceptive trade practice laws.  On this news, shares of TrueCar fell $0.47, or over 2.7%, to close at $16.50 on May 10, 2015.

On May 20, 2015, another lawsuit was filed against TrueCar in Los Angeles County Superior Court, asserting that TrueCar violates various laws that govern car sales in the state of California including claims that TrueCar acts as a dealer and broker in car sales transactions without proper licensing.  On the news, shares of TrueCar fell $1.04, or over 6.9%, to close at $13.99 on May 20, 2015.

If you wish to serve as lead plaintiff, you must move the Court no later than July 27, 2015.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.