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Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against TrueCar, Inc.

Oklahoma City, OK (April 3, 2018) – On March 30, 2018, a securities class action lawsuit was filed in the United States District Court for the Central District of California against TrueCar, Inc. (NASDAQ: TRUE).  The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is February 16, 2017 through November 6, 2017.  More specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) that the United Services Automobile Association (“USAA”) had been planning significant changes to its website that would have a material adverse effect on the volume of purchases generated by USAA; (2) that USAA made significant changes to its website that would have a material adverse effect on the volume of purchases generated by USAA; (3) that the changes to USAA’s website maintained by TrueCar caused a material adverse effect on the volume of purchases generated by USAA; and (4) that, as a result of the foregoing, Defendants’ statements about TrueCar’s business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

On November 6, the Company disclosed that USAA had made significant changes to its website during the Class period that had a material adverse effect on the volume of purchases generated by USAA.  On this news, shares of TrueCar declined to close at $10.58 per share on November 7, 2015, on heavy trading volume.

Plaintiff seeks to recover damages on behalf of all TrueCar, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above.  You may move the Court no later than Friday, June 1, 2018 to serve as a lead plaintiff for the entire Class.  However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.

To join this class action, click here to obtain an investor certification.  Once complete, please email this form to rkh@federmanlaw.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN:  Robin.

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