Company: TRUE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001327318-25-000065
Chunk: 124

Company: TrueCar, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part II, Item 1A
Chunk 124
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 as the TrueCar Certified Dealers on our network.

Further, in March 2024, the SEC approved rules requiring increased climate change-related disclosure in certain public company SEC filings, and, in October 2023, California’s governor signed two bills into law that would require companies operating in California to provide certain detailed climate-related disclosures as early as 2026. Following legal challenges, the SEC announced on March 27, 2025, that it had voted to end its defense of such rules, and the California rules are also facing legal scrutiny. However, if the SEC or regulators in states such as California were to seek to impose these or similar rules in the future, we may face increased reporting obligations that divert management attention or require us to spend significant resources.

We cannot guarantee that we will be able to successfully adapt our operations in response to any climate-related changes or comply with any increased reporting obligations in a cost-effective manner, and our business, financial condition and results of operations could be materially and adversely affected.

We face litigation and are party to legal proceedings that could have a material adverse effect on our business, financial condition, results of operations and cash flows.

We are subject to a variety of claims and lawsuits. These claims may arise from a wide variety of business practices and initiatives, including product innovations, the content and functionality of the websites and mobile applications that we operate, our advertising practices and content, our use and storage of data, our use of intellectual property, M&A transactions and business transactions or other business relationships, such as those with our users, participating dealers, affinity partners, OEM partners, licensors, licensees, landlords, tenants and employees. Additionally, as a public company, we face the risk of stockholder lawsuits, particularly if we experience declines in the price of our common stock. Adverse outcomes in any claim or lawsuit against us could result in significant monetary damages or injunctive relief that could adversely affect our ability to conduct our business. Examples of litigation to which we are, and have been, subject include:

Stockholder Litigation

In the past we have been subject to securities class action litigation and stockholder derivative actions, including actions stemming from allegations of breaches of fiduciary duties by our directors and officers, and we may be subject to similar actions in the future. For example, in 2018, a purported stockholder filed a putative securities class action against us and certain of our then-current and former officers and directors were named as defendants in a putative securities class action, which we refer to as the