Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 213

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 213
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 the Company’s termination of the Lease and seeking an unspecified amount of damages. This litigation is currently in the discovery phase and a trial has been scheduled for April 2027. As of September 30, 2025, the Company has fully impaired the right-of-use asset associated with the Lease of $6.8 million in accordance with FASB ASC 360 — Property, Plant, and Equipment. At September 30, 2025, the lease liability of $7.5 million remains on the condensed consolidated balance sheet and will remain until the matter is legally resolved in accordance with FASB ASC 405 — Liabilities. The Company will continue to recognize lease cost for the accretion of interest on the lease liability until the matter is resolved.

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The Company intends to vigorously defend its position that the Lease was appropriately terminated.Automotive Software Vendor Class Action SettlementIn July 2024, a federal court certified a damages class of approximately 250 automotive software application vendors that had purchased certain data integration services from CDK Global, LLC (“CDK”) or The Reynolds and Reynolds Company (“Reynolds”) since October 2013 (the “Vendor Class”). The Company belongs to this class based on claims that CDK and Reynolds violated antitrust laws by conspiring to coordinate their data access policies and eliminate competition. In January 2025, CDK and the Vendor Class entered into a settlement agreement (the “Settlement Agreement”) that provided for monetary consideration to be paid by CDK to the Vendor Class. The Settlement Agreement received final court approval in September 2025. Pursuant to the terms of the Settlement Agreement, the Company will receive a total payment of $11.4 million, disaggregated into four payments. The first payment of $8.1 million was received on September 24, 2025, and the remaining amount will be paid in three annual installments of $1.1 million over the next three years in the month of September.The Company fully recognized the gain of $11.4 million within Other income for the three and nine months ended September 30, 2025. As of September 30, 2025, the Company recorded the remaining installment amounts of $1.1 million and $2.2 million within Other current assets and Other assets, respectively, due to the short and long-term nature of the receivable.Other AgreementsIn October 2024, American Express, one of the Company’s longstanding affinity group marketing partners, provided the Company with a notice