Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 4

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 4
Chunk 4
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 diverted towards the Merger and related matters, for which we will have received little or no benefit if completion of the Merger does not occur; 

•if the Merger Agreement is terminated under certain specified circumstances, we would be required to pay Parent a termination fee of either $4.0 million or $8.0 million, or, under certain other circumstances, we may be required to reimburse certain costs and fees incurred by Parent and its affiliates, up to a maximum amount of $3.0 million; 

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•we may experience negative publicity or reactions from our investors, customers, partners, vendors, landlords or employees, which may adversely affect our business, our financial condition and our results of operations and prospects;

•we may have difficulties maintaining relationships with our customers, partners and vendors; and

•we could be subject to litigation related to any delay or failure to complete the Merger.

The announcement and pendency of the Merger may disrupt our business, and the Merger could divert management’s attention, disrupt our relationships with third parties and employees and result in negative publicity or legal proceedings, any of which could negatively impact our operating results and ongoing business.

In connection with the pending Merger, our current and prospective employees may experience uncertainty about their future roles with us following the Merger, which may materially adversely affect our ability to attract and retain key personnel and other employees while the Merger is pending. Key employees may depart because of issues relating to the uncertainty and difficulty of integration or a desire not to remain with us prior to or following the consummation of the Merger. Accordingly, no assurance can be given that we will be able to attract and retain key employees to the same extent that we have been able to in the past.

The proposed Merger could cause disruptions to our business or business relationships with our existing and potential customers, partners, vendors and landlords, and this could have an adverse impact on our results of operations. Parties with which we have business relationships may experience uncertainty as to the future of such relationships and may delay or defer certain business decisions, seek alternative relationships with third parties or seek to negotiate changes or alter their present business relationships with us. Parties with which we otherwise may have sought to establish business relationships may seek alternative relationships with third parties.

Any of the foregoing, individually or in combination, could materially and adversely affect our business, our financial condition and our results of operations and prospects.

The Merger Agreement contains provisions that limit our ability to pursue alternatives to the Merger and may discourage other third parties from