Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California against HyreCar Inc.
Sep 29, 2021 12:09 PM ET
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Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in United States District Court of the Central District of California on behalf of those who purchased shares of HyreCar Inc. between May 14, 2021 and August 10, 2021, inclusive (the “Class Period”).
All investors who bought HyreCar Inc. and the losses incurred are uwrinkled to immediately contact the firm at [email protected] or (800) 575-0735 or (212) 545-4774. You can get additional information regarding the action or join the case on our website, www.whafh.com.
If you have suffered losses in the shares of HyreCar Inc., yoyou can, no later than October 26, 2021, request that the Court appoint you as the principal plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in HyreCar Inc.
At August 10, 2021, the Company announced disappointing results for the quarter ended June 30, 2021 (“Q2 2021”), including the net losses of $ 9.3 million compared to the losses of $ 3.8 million at the same period the previous year. The Company’s adjusted EBITDA loss for the second quarter of 2021 was $ 7.1 million (four times higher than the $ 1.7 million adjusted EBITDA loss suffered in the second quarter of 2020) and its gross margin for the second quarter of 2021 was fair $ 0.8 million (less than a third of the Company’s gross margin in the second quarter of 2020), with a gross profit margin of only 24%.
The Company also revealed that it incurred skyrocketing revenue costs during the quarter, primarily due to the significantly higher incidence of insurance claims – including claims before March 31, 2021 “beyond the reserves”.
During the company’s earnings call, executives revealed that the company was forced to revamp its claims processes and procedures and improve its risk price adjustments for policies issued by the company. And when asked if the company is really on track to achieve 45% to 50% gross margins in the short term as previously reported, the CFO of the company essentially withdrew that target, calling it a “shoot for the sky” objective and stating that “Aim for a margin greater than 40%” was more realistic.
Following this news, the Company’s share price fell nearly 50%, closing at $ 9.85, down $ 9.27 per share.
Wolf Haldenstein has extensive experience prosecuting securities class actions and derivative litigation in federal and state trial and appellate courts across the country. The firm has lawyers in various areas of practice; and offices at new York, Chicago and San Diego. The firm’s reputation and expertise in shareholder litigation and other class actions has been repeatedly recognized by the courts, which have appointed it to senior positions in complex multidistrict and consolidated securities litigation.
If you would like to discuss this action or have any questions regarding your rights and interests in this matter, please contact immediately Wolf Haldenstein by phone at (800) 575-0735, by e-mail at [email protected], or visit our website at www.whafh.com.
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Pierre, Director of Business and Financial Analysis
E-mail: [email protected], [email protected] Where [email protected]
Phone. : (800) 575-0735 or (212) 545-4774
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