SAN DIEGO, September 23, 2021 (GLOBE NEWSWIRE) – Robbins Geller Rudman & Dowd LLP announces that buyers and purchasers of HyreCar Inc. (NASDAQ: HYRE) securities between May 14, 2021 and August 10, 2021 inclusive (the âClass Periodâ) have until October 26, 2021 to solicit nomination as a claimant main in the HyreCar class action lawsuit. Submitted by Robbins Geller, on HyreCar The class action accuses HyreCar and some of its executives of violations of the Securities Exchange Act of 1934. HyreCar class action lawsuit – Baron c. HyreCar Inc., # 21-cv-06918 – began August 27, 2021 in the Central District of California.
If you wish to serve as the principal applicant of the HyreCar class action, please fill in your information by clicking here. You can also contact the lawyer Brian E. Cochran from Robbins Geller by calling 800 / 449-4900 or emailing [email protected]. The principal applicant’s requests for the HyreCar The class action must be filed with the court no later than October 26, 2021.
The claimant is represented by Robbins Geller, who has extensive experience in the prosecution of collective actions of investors, including actions involving financial fraud. You can view a copy of the complaint by clicking here.
CASE ALLEGATIONS: The HyreCar The class action alleges that, throughout the Class Period, the Defendants made false and misleading representations and failed to disclose that: (i) HyreCar had substantially underestimated its insurance reservations; (ii) HyreCar consistently failed to pay valid insurance claims incurred prior to the Class Period; (iii) HyreCar had incurred significant expenses in transitioning to its new liability insurance claims administrator and handling claims incurred in previous periods; (iv) HyreCar had not correctly priced the risk in its insurance products and suffered a high incidence of claims as a result; (v) HyreCar had been forced to radically reform its underwriting, policies and complaints procedures in response to unacceptable severity of claims and customer complaints; and (vi) as a result, HyreCar’s operations and outlook have been distorted as HyreCar was not on track to meet the financial estimates provided to investors during the Class Period, and those estimates had no impact. reasonable basis in fact, including HyreCar’s purported gross margin, earnings before interest, taxes, depreciation and amortization (âEBITDAâ), and trajectories of net losses.
On August 10, 2021, HyreCar reported very disappointing results for the quarter ended June 30, 2021 (âQ2 2021â), including net losses of $ 9.3 million compared to losses of $ 3.8 million. dollars in the same period the previous year. In addition, HyreCar’s adjusted EBITDA loss for the second quarter of 2021 was $ 7.1 million (four times higher than the adjusted EBITDA loss of $ 1.7 million recorded in the second quarter of 2020) and its gross margin for the second quarter of 2021 was only $ 0.8 million (less than a third of HyreCar’s gross margin in the second quarter of 2020), with a gross profit margin of just 24%. Along with the post, HyreCar revealed that HyreCar incurred skyrocketing top-line costs in the quarter, primarily due to a significantly higher incidence of insurance claims – including claims before March 31. 2021 âbeyond the reservesâ. During the HyreCar earnings call, executives revealed that HyreCar was forced to revamp its claims processes and procedures and improve its risk price adjustments for policies issued by HyreCar. And when asked if HyreCar was really on track to achieve 45-50% gross margins in the short term, as previously depicted, HyreCar’s CFO essentially pulled that target away, calling it a “pull target.” towards the sky âand stating thatâ shooting for the margin over 40% âwas more realistic. At this news, HyreCar’s share price has fallen by nearly 50%, hurting investors.
THE MAIN COMPLAINANT PROCESS: The Private Securities Litigation Reform Act of 1995 allows any investor who purchased HyreCar securities during the Recourse Period to seek appointment as principal plaintiff in the HyreCar class action lawsuit. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class which is also typical and adequate of the putative class. A lead applicant acts on behalf of all other class members by ordering HyreCar class action lawsuit. The lead plaintiff can choose a law firm of their choice to argue the case. HyreCar class action lawsuit. The ability of an investor to participate in any potential future recovery of the HyreCar the class action does not depend on the function of principal plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm representing investors in securities class actions. Robbins Geller lawyers have secured many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $ 7.2 billion – in In re Enron Corp. Dry. Litigation. The 2020 ISS Securities Class Action Services Top 50 report ranked Robbins Geller # 1 for recovering $ 1.6 billion from investors last year, more than double the amount recovered by any other company from securities claimants. Please visit http://www.rgrdlaw.com for more information.
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Robbins Geller Rudman & Dowd LLP
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Brian E. Cochran, 800-449-4900