The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of HyreCar Inc. (HYRE) Investors

LOS ANGELES, Oct. 20, 2021

If you are a shareholder who suffered a loss, click here to participate.

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.

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