The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against HyreCar Inc. (HYRE)

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming October 26, 2021 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased HyreCar Inc. (“HyreCar” or the “Company”) (NASDAQ: HYRE) securities between May 14, 2021 and August 10, 2021, inclusive (the “Class Period”).

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.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased or otherwise acquired HyreCar securities during the Class Period, you may move the Court no later than October 26, 2021 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [e-mail], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.