NEW YORK, Sept. 02, 2021 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of those who purchased shares of HyreCar Inc. (NASDAQ: HYRE) (the “Company”) between May 14, 2021 and August 10, 2021, inclusive (the “Class Period”).
All investors who purchased HyreCar Inc. and incurred losses are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses in the shares of HyreCar Inc., you may, no later than October 26, 2021, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in HyreCar Inc.
PLEASE CLICK HERE TO JOIN CASE
On August 10, 2021, the Company announced disappointing results for the quarterly period ended June 30, 2021 (“Q2 2021”), including net losses of $9.3 million compared to losses of $3.8 million in the same period the prior year. The Company’s adjusted EBITDA loss for Q2 2021 was $7.1 million (four times higher than the $1.7 million adjusted EBITDA loss experienced in the second quarter of 2020) and its gross profit for Q2 2021 was just $0.8 million (less than one-third of the Company’s gross profit in the second quarter of 2020), with a gross profit margin of just 24%.
The Company also disclosed that it had incurred skyrocketing costs of revenue during the quarter primarily as a result of significantly higher insurance claims incidence – including claims before March 31, 2021 “in excess of the reserves.”
During the Company’s earnings call, executives revealed that the Company had been forced to revamp its claims processes and procedures and improve its risk price adjustments for policies issued by the Company. And when asked whether the Company was actually on track to achieve 45% to 50% gross margins in the near term as previously represented, the Company’s CFO essentially withdrew this goal, calling it a “shoot for the sky” aim and stating that “shooting for margin upwards of 40%” was more realistic.
On this news, the price of the Company stock fell nearly 50%, closing at $9.85, down $9.27 per share.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
