On February 5, 2019, Saxena White secured a major victory with an important decision issued by the Central District of California Court in Leon D. Milbeck v. TrueCar, Inc. et al., C.A. No. 2:18-cv-02612. In his order, the Honorable Stephen Wilson denied Defendants’ motion to dismiss in its entirety.

The Court found that Saxena White “adequately alleged—under both the plausibility and heightened pleading standards—that Defendants made materially false and misleading statements” by warning that USAA, its most important affinity partner, may redesign its website in a way that would materially harm TrueCar in the future when that risk had “already come to fruition,” and by “falsely representing that USAA would be a key driver of unit and revenue growth in 2017.” The Court further found that Plaintiff had “adequately alleged a strong inference of scienter by alleging that Defendants knew about USAA’s website redesign and its impact as of January 2017”—several months before the redesign was announced to investors—and that TrueCar’s former CFO and CAO had engaged in stock in sales that were suspicious in their timing, size, and amount.

The case is now in the discovery phase.