RADNOR, Pa., Sept. 19, 2021 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP reminds HyreCar Inc. (NASDAQ: HYRE) («HyreCar») investors that a securities fraud class action lawsuit has been filed on behalf of those who purchased or acquired HyreCar securities betweeen May 14, 2021 and August 10, 2021, inclusive (the «Class Period»).
Lead Plaintiff Deadline: October 26, 2021
Contact: James Maro, Esq. (484) 270-1453
Toll free (844) 887-9500
HyreCar operates a web-based marketplace that allows car and fleet owners to rent their cars to Uber, Lyft and other gig economy service drivers. HyreCar operates a platform that connects gig drivers with automobiles, while also providing insurance and tactical support. HyreCar earns revenues from two revenue share fees (one from the driver and one from the owner) as well as fees for driver insurance, with the insurance fee representing a large (if not majority) percentage of the revenue generated by each transaction.
The complaint alleges that throughout the Class Period, the defendants failed to disclose the following adverse facts, which were known to defendants or recklessly disregarded by them: (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 (6) as a result of the above, 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, earnings before interest, taxes, depreciation, and amortization (EBITDA) and net loss trajectories.
HyreCar investors may, no later than October 26, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
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SOURCE Kessler Topaz Meltzer & Check, LLP