Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased HyreCar Inc. (“HyreCar” or the “Company”) (NASDAQ: HYRE) securities between May 14, 2021 and August 10, 2021, inclusive (the “Class Period”). HyreCar investors have until October 26, 2021 to file a lead plaintiff motion.
Investors suffering losses on their HyreCar investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On August 10, 2021, after the market closed, HyreCar announced financial results for second quarter 2021, reporting net losses of $9.3 million compared to losses of $3.8 million in the prior year period. The Company also disclosed that it had incurred higher costs of revenue “primarily [due to] additional insurance claims of $2.8 million . . . and incidental payments incurred prior to March 31, 2021 in excess of the reserves and accruals.”
On this news, the Company’s share price fell 50% to close at $9.85 per share on August 11, 2021, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) HyreCar had materially understated its insurance reserves; (2) HyreCar had systematically failed to pay valid insurance claims incurred prior to the Class Period; (3) HyreCar had incurred significant expenses transitioning to its new third-party insurance claims administrator and processing claims incurred from prior periods; (4) HyreCar had failed to appropriately price risk in its insurance products and was experiencing elevated claims incidence as a result; (5) HyreCar had been forced to dramatically reform its claims underwriting, policies, and procedures in response to unacceptably high claims severity and customer complaints; and as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased HyreCar securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20210914005385/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
