NEW YORK, May 23, 2018 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in TrueCar, Inc. (“TrueCar” or the “Company”) (NASDAQ:TRUE) of the June 1, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in TrueCar stock or options between February 16, 2017 and November 6, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/TRUE.  There is no cost or obligation to you.

You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. 

CONTACT:
FARUQI & FARUQI, LLP
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New York, NY 10017
Attn:  Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330

The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased TrueCar securities between February 16, 2017 and November 6, 2017 (the “Class Period”).  The case, Milbeck v. Truecar, Inc. et al., No. 18-cv-02612 was filed on March 30, 2018.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that changes done to the United Services Automobile Association’s (“USAA”) website would have a material adverse effect on the volume of car purchases generated by USAA members.

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 USAA, its largest source of revenue. On August 8, 2017, the Company released its financial results for the second quarter of 2017, touting high unit sales growth rates and setting range of 265,000 to 275,000 units for the quarter. The Company, however, lowered its guidance for certain other segments of its business.

After the announcement, TrueCar’s share price fell from $19.51 per share on August 8, 2017 to a closing price of $15.74 on August 10, 2017—a $3.77 or a 19.32% drop.

Then, on November 6, 2017, the Company released its financial results for the third quarter of 2017, announcing that, with 253,527 units sold, it had missed its previous quarterly guidance of 265,000 to 270,000 units. In the press release and conference call held on the same day, Company executives spoke about the changes made to the USAA website and how this development had influenced the decline in sales during the quarter.

After the announcement, TrueCar’s share price fell from $16.34 per share on November 6, 2017 to a closing price of $10.58 on November 7, 2017—a $5.76 or a 35.25% drop.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. 

Faruqi & Faruqi, LLP also encourages anyone with information regarding TrueCar’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

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