Lead Plaintiff deadline is this coming Monday, July 27, 2015
Stock down substantially today on earnings warning
NEW YORK, July 24, 2015 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a class action lawsuit has been filed against TrueCar, Inc. (“TrueCar” or the “Company”) (NASDAQ: TRUE). The class action, filed in United States District Court for the Central District of California, is on behalf of a class consisting of all persons or entities who purchased TrueCar securities between May 16, 2014 and May 20, 2015 inclusive (the “Class Period”). Wolf Haldenstein encourages all shareholders who suffered losse on securities purchased within the Class Period to contact us immediately at classmember@whafh.com or (800) 575-0735.
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, 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.
Additionally, after the close of trading on July 23, 2015, TrueCar announced that it was drastically reducing 2015 full year guidance to a range of $252 million to $258 million, from the previously announced range of $280 million to $290 million. As a result, the stock is trading $6.28 - $4.39, intraday on July 24, 2015, a market capitalization decline of $360 million!
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas, and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein Adler Freeman & Herz LLP by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website www.whafh.com. All e-mail correspondence should make reference to the “TrueCar Investigation.”
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