Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 6

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 4
Chunk 6
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 restrictions could prevent us from pursuing certain business opportunities that may arise prior to the consummation of the Merger and may affect our ability to execute our business strategies and attain financial and other goals and may impact our financial condition, results of operations and cash flows.

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The consideration to be paid to our stockholders in connection with the Merger will not be adjusted if the value of our business or assets changes before the Merger closes, and the Merger Agreement prevents us from pursuing alternatives to the Merger.

The consideration to be paid by Parent to our stockholders will not be adjusted if the value of our business or assets changes, and the Merger Agreement does not permit us to terminate the Merger Agreement solely because of changes in the trading price of our common stock or other intervening events. Further, following the expiration of the “go-shop” period, we are not permitted to solicit alternative proposals.

We have incurred and expect to continue to incur significant costs in connection with the Merger that could negatively impact our liquidity, cash flows and operating results.

We have incurred and expect to continue to incur significant costs in connection with the Merger, including transaction costs, legal fees and other costs that our management team believes are necessary to effect or realize the anticipated benefits from the Merger. The incurrence of these costs could negatively impact our financial condition and results of operations, including in the periods in which they are incurred.

Litigation may be filed against us or our board of directors challenging the Merger or the other transactions contemplated by the Merger Agreement, which could prevent or delay the completion of the Merger or result in the payment of damages.

Litigation may be filed against us, our board of directors or other parties to the Merger Agreement, challenging the Merger, or making other claims in connection therewith. Such lawsuits may be brought by our purported stockholders and may seek, among other things, to enjoin the consummation of the Merger. One of the conditions to the consummation of the Merger is that it is not prohibited or made illegal by any court order or legal enactment of any governmental entity. As such, if a plaintiff in any potential lawsuit is successful in obtaining an injunction prohibiting the defendants from completing the Merger on the agreed upon terms, then the injunction may prevent the Merger from becoming effective within the expected timeframe or at all. Further, any such litigation could be distracting to our management or result in the payment of damages. Defending against and settling or otherwise resolving these types of claims can result