HyreCar Investors Who Have Suffered Losses Greater Than $25,000 Encouraged To Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is investigating whether HyreCar Inc. (“HyreCar” or the “Company”) (NASDAQ: HYRE) violated federal securities laws.
HyreCar investors who purchased, or otherwise acquired, HyreCar securities between May 14, 2021 and August 10, 2021, both dates inclusive (the “Class Period”), and suffered financial losses greater than $25,000 are encouraged to contact Kehoe Law Firm, P.C. to learn more about the securities investigation or potential securities claims.
HyreCar investors should be aware that a class action lawsuit was filed against the Company on August 27, 2021 in United States District Court, Central District of California, on behalf purchasers of HyreCar securities during the Class Period.
According to the class action complaint, HyreCar issued materially false and/or misleading statements, because they failed to disclose the following adverse facts pertaining to the Company’s business, operations and financial condition, which were known to, or recklessly disregarded by, the HyreCar defendants as follows: (a) that HyreCar had materially understated its insurance reserves; (b) that HyreCar had systematically failed to pay valid insurance claims incurred prior to the Class Period; (c) that HyreCar had incurred significant expenses transitioning to its new third-party insurance claims administrator and processing claims incurred from prior periods; (d) that HyreCar had failed to appropriately price risk in its insurance products and was experiencing elevated claims incidence as a result; (e) that HyreCar had been forced to dramatically reform its claims underwriting, policies and procedures in response to unacceptably high claims severity and customer complaints; and (f) that, as a result of the foregoing, HyreCar’s operations and prospects were misrepresented because the Company was not on track to meet the financial estimates provided to investors during the Class Period, and such estimates lacked a reasonable basis in fact, including HyreCar’s purported gross margin, EBITDA and net loss trajectories.