TrueCar, Inc. (NASDAQ: TRUE)
In February 2017, Defendants made positive statements regarding their TrueCar business, and then on May 2, 2017 adopted trading plans under which officers and directors sold hundreds of thousands of shares, along with Director Steven Dietz and various Upfront limited partnerships.
On November 6, 2017, Defendants announced the Company missed its guidance of unit sales and in part attributed the shortfall to a website redesign by its largest affinity group marketing partner – USAA – for which they admitted prior knowledge. This news drove the price of TrueCar shares down $5.76, or about 35%, to close at $10.58 on November 7, 2017.
“TrueCar investors have suffered enormous losses while insiders made off with millions,” said Hagens Berman partner Reed Kathrein. “We’re focused on Defendants’ statements about TrueCar’s USAA channel and their knowledge of problems before November 6, 2017 and before their insider sales in May, July and August.”
Whistleblowers: Persons with non-public information regarding TrueCar should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email TRUE@hbsslaw.com.
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