The Ademi Firm is investigating TrueCar (NYSE: HI) for possible breaches of fiduciary duty and other violations of law in its transaction with Lone Star Funds.
Shareholders of TrueCar will receive $2.55 per share, representing an equity value of approximately $227 million. TrueCar insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for TrueCar by imposing a significant penalty if TrueCar accepts a competing bid. We are investigating the conduct of the TrueCar board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.