NEW YORK, March 16, 2018 /PRNewswire/ — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is continuing its investigating of potential claims on behalf of investors of TrueCar, Inc. (“TrueCar” or the “Company”) (NASDAQ: TRUE) for violations of the federal securities laws. Investors who purchased TrueCar common stock may be affected.
On or about April 27, 2017, TrueCar and other selling shareholders sold 9 million shares at $16.50 per share in a secondary common stock offering (the “Offering”) for gross proceeds of over $148 million.
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On August 8, 2017, TrueCar issued a press release reporting second quarter 2017 financial results and said that revenues for the third quarter ending September 30, 2017 were expected to be in the range of $85 million to $87 million.
However, on November 6, 2017 after the market closed, TrueCar issued its third quarter 2017 financial results and reported third quarter revenue of only $82.4 million. During the conference call that followed, the Company attributed the surprise sales miss, in part, to the fact that USAA, its most important channel partner that generates about 30% of total unit sales, had undergone a significant website redesign which impacted traffic and close rates. As a result, TrueCar experienced a 5% decline in unit sales from USAA during the quarter. Following this news, TrueCar’s shares plummeted by $5.76 per share, more than 35%, to close at $10.58 per share on November 7, 2017, significantly lower than the Offering price of $16.50 per share on April 27, 2017.
On February 2, 2018, TrueCar disclosed the unexpected resignation of its Chief Financial Officer, Michael Guthrie, for personal reasons effective as of the prior day. Following this news, TrueCar’s shares declined by $0.50 per share, more than 4%, to close at $11.25 per share.
As of the closing of the market on March 16, 2018, TrueCar shares closed at $10.80 per share.
If you are an investor in TrueCar and would like to discuss our investigation, please contact us by emailing email@example.com or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
SOURCE Kaplan Fox & Kilsheimer LLP
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