There is an active class action lawsuit against HyreCar, Inc. (HYRE), alleging that the company made false and misleading statements to investors about its insurance reserves and claims liability. The lawsuit was filed in 2021 and is still pending.
The lawsuit alleges that, during the class period (May 14, 2021 – August 10, 2021), HyreCar materially understated its insurance reserves, failed to pay valid insurance claims incurred prior to the class period, failed to adequately price risk in its insurance products, and experienced elevated claims incidence as a result. As a result of these alleged misstatements and omissions, the lawsuit alleges that HyreCar’s stock price was artificially inflated during the class period.
HyreCar has denied any wrongdoing and has filed a motion to dismiss the lawsuit. The motion to dismiss is still pending.
The HyreCar lawsuit is a reminder that investors should carefully research any company before investing, and should be wary of companies that make overly optimistic statements about their future prospects.
If you have any questions about the HyreCar lawsuit or about investing in general, you should consult with a financial advisor.
