TrueCar, Inc.

Case Details

Class Period:
February 16, 2017 – November 6, 2017
Date Filed:
March 30, 2018
Case Number:
2:18-cv-02612
Jurisdiction:
Central District of California

Case Summary

The complaint alleges that during the Class Period the Company made numerous positive statements concerning the Company's prospects and growth, while failing to disclose negative developments related to the United Services Automobile Association ("USAA"), its largest source of revenue. The Complaint further alleges that, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) that USAA had been planning significant changes to its website that would have a material adverse effect on the volume of purchases generated by USAA; (2) that USAA made significant changes to its website that would have a material adverse effect on the volume of purchases generated by USAA; (3) that the changes to USAA's website maintained by TrueCar caused a material adverse effect on the volume of purchases generated by USAA; and (4) that, as a result of the foregoing, Defendants' statements about TrueCar's business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis. On November 6, the Company disclosed that USAA had made significant changes to its website during the Class period that had a material adverse effect on the volume of purchases generated by USAA. On this news, TrueCar's shares declined by $5.76 per share, or 35.25%, to close at $10.58 per share on November 7, 2017 on heavy trading volume.

On June 27, 2018, the court appointed Oklahoma Police Pension and Retirement Fund as Lead Plaintiff and Saxena White as Lead Counsel.

Plaintiff filed its Amended Complaint on August 24, 2018. On November 5, 2018, Defendants filed their motion to dismiss the Amended Complaint. Plaintiff filed its opposition to the motion on December 20, 2018. Defendants’ reply is due on January 31, 2019. The motion is scheduled for a hearing before the Court on February 11, 2019. If Defendants’ motion is unsuccessful, the Court has scheduled a jury trial for August 6, 2019, with a pretrial conference set for July 29, 2019.

Action Details

View Complaint (pdf)

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