SANTA MONICA, Calif., May 20, 2015 /PRNewswire/ -- TrueCar, Inc. (NASDAQ :TRUE ) has always been committed to improving the car-buying experience for all participants, including consumers, dealers and manufacturers.
We are aware that a lawsuit was filed on behalf of the California New Car Dealers Association ("CNCDA"), a trade association that seeks a declaration from the Los Angeles Superior Court as to whether TrueCar qualifies as a dealer or autobroker under California law. To be clear, the complaint does not affirmatively seek any monetary relief from TrueCar, our network of Certified Dealer partners, or anyone else.
TrueCar is confident it can demonstrate the compliance of our business model with California law. We fail to understand how the CNCDA believes that it is serving the interests of its members by seeking a declaration that approximately half of those members are violating California law through their relationships with TrueCar.
It is telling that the lawsuit was filed by a trade association and not by any actual California dealers, consumers, or governmental agency charged with the responsibility for enforcing the very laws that are at issue in the lawsuit. We believe the reason is simple: TrueCar operates in compliance with California law.
TrueCar has invested a tremendous amount of resources to ensure its compliance with all applicable laws, including specifically the laws at issue in this litigation. TrueCar has always proactively maintained an open dialogue with the regulators charged with the oversight of these laws in order to answer any questions regulators may have regarding TrueCar's operations and the compliance of those operations with applicable law. These regulators understand our business model and have taken no enforcement action against us since we began operating in California in 2005.
The California Legislative Counsel Bureau has previously considered whether a web-based service that operates in the same manner as TrueCar constitutes an autobroker under California law. Contrary to the allegations in the CNCDA's complaint, the Legislative Counsel Bureau concluded that the operation of such a service "does not constitute autobrokering" and the operator of the service "is not a dealer" within the meaning of applicable law.
As recently as October 2014, TrueCar met with representatives of the California Department of Motor Vehicles, which is the regulatory body charged with enforcement of the statutes at-issue in the CNCDA's complaint. After analyzing TrueCar's business operations in depth, including specifically those challenged by this lawsuit, the DMV did not request that TrueCar make any changes to its California business operations.
In short, we are proud of the service that we deliver to our users, participating dealers, affinity partners, and manufacturers. If this lawsuit is allowed to proceed we welcome the opportunity to address the issues raised and we expect to be fully vindicated.
This press release contains forward-looking statements, including statements regarding the successful resolution of litigation to which TrueCar is subject. Actual results could differ materially from those contemplated by these forward-looking statements. Refer to the Risk Factors sections of TrueCar's annual report on Form 10-K for 2014 and subsequent quarterly report on Form 10-Q filed with the Securities and Exchange Commission for a discussion of the factors that could cause results to differ materially. All forward-looking statements in this press release are based on information available to management as of the date hereof. TrueCar disclaims any obligation to update these forward-looking statements.
TrueCar, Inc. (NASDAQ :TRUE ), the negotiation-free car buying and selling mobile marketplace, gives consumers transparent insight into what others paid and access to guaranteed savings off MSRP from TrueCar Certified Dealers. TrueCar's network of more than 10,000 trusted Certified Dealers is committed to providing upfront pricing information and a hassle-free buying experience. TrueCar powers car-buying programs for some of the largest U.S. membership and service organizations, including AARP, American Express, AAA and USAA. Not all program features are available in all states. TrueCar is headquartered in Santa Monica, California, with offices in San Francisco and Austin, Texas. For more information, go to www.truecar.com. Follow us on Facebook or Twitter.
SOURCE TrueCar, Inc.