Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 347

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 347
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 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 in substantial costs, including costs associated with indemnification of directors and officers, and divert management time and resources. An adverse judgment in any such litigation relating to the Merger could result in monetary damages, which could have a negative impact on our financial condition. 

Our directors and executive officers have interests in the Merger that may be different from, or in addition to, the interests of our other stockholders.

Our directors and executive officers have financial interests in the Merger that may be different from, or in addition to, the interests of our other stockholders, including:

•the acceleration of their equity awards provided for under the Merger Agreement;

•severance and other benefits in the