SAN DIEGO and SANTA MONICA, Calif., Aug. 19, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of TrueCar, Inc. (NASDAQGS: TRUE) breached their fiduciary duties to shareholders. TrueCar operates as a data driven platform that allows users to obtain market based pricing data on new and used cars and to connect with TrueCar's network of certified dealers.
View this information on the law firm's Shareholder Rights Blog:
TrueCar Fails to Disclose Its Inability to Act as A Broker/Dealer
Since the embattled company went public in May 2014, it has been the target of numerous lawsuits. In March 2015, 117 franchises in New York filed a lawsuit accusing TrueCar of falsely advertising that consumers can buy vehicles without haggling or price negotiations. This was followed by a May 2015 lawsuit filed by the California New Car Dealers Association, which alleges that TrueCar is acting without the requisite license. In addition, TrueCar recently reported bleak financials for the second quarter 2015, including a loss of $14.7 million for the quarter. TrueCar shareholders then filed a class action lawsuit claiming that the company misled investors about the way it conducted business by way of false statements and its compliance with the law. On August 10, 2015, the company's founder, Scott Painter, announced his resignation as TrueCar's Chief Executive Officer. As a result of TrueCar's embattled business practices, its stock has fallen 39% since the company's May 16, 2014 IPO, and 78% from its trading high of $25.
In light of this news, Robbins Arroyo LLP's investigation focuses on whether TrueCar misled the investing public by issuing false statements and omitting material information from its Registration Statement regarding its licensing that improperly inflated the company's stock price.
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, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP