May 22, 2015 (Shareholders Foundation) - An investigation on behalf of investors of TrueCar Inc (NASDAQ:TRUE) shares over potential securities laws violations by TrueCar Inc and certain of its directors and officers in connection certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of TrueCar Inc (NASDAQ:TRUE) concerning whether a series of statements by TrueCar Inc regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

TrueCar Inc (NASDAQ:TRUE) went public in May 2014 and shares of TrueCar Inc (NASDAQ:TRUE) grew from $9.22 per share in late May 2014 to as high as $24.15 per share in September 2014.

On February 19, 2015, TrueCar Inc reported its fourth quarter and full year 2014 financial results. TrueCar Inc reported that its annual Total Revenue rose from $133.96 million in 2013 to $206.65 million in 2014 and that its Net Loss increased from $25.06 million to $48.43 million. Among other things, TrueCar Inc also issued its business outlook for the first quarter 2015 and full year 2015.

On May 20, 2015, an article was published that stated that the California New Car Dealers Association filed a lawsuit against the fast-growing TrueCar auto sales service, claiming TrueCar Inc violates various laws that govern car sales in the state. The article also said that the lawsuit, filed in Los Angeles County Superior Court, claimed that TrueCar Inc acts as a dealer and broker in car sales transactions but doesn't have the proper licensing for the business.
TrueCar Inc issued a statement on May 20, 2015, saying that it is confident it can demonstrate the compliance of its business model with California law.