HyreCar Inc.

According to the complaint, 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 allegedly failed to disclose to investors:

(a) that HyreCar had materially understated its insurance reserves;
(b) that HyreCar had systematically failed to pay valid insurance claims incurred prior to the Class Period;
(c) that HyreCar had incurred significant expenses transitioning to its new third-party insurance claims administrator and processing claims incurred from prior periods;
(d) that HyreCar had failed to appropriately price risk in its insurance products and was experiencing elevated claims incidence as a result;
(e) that HyreCar had been forced to dramatically reform its claims underwriting, policies and procedures in response to unacceptably high claims severity and customer complaints; and
(f) that, as a result of (a)-(e) above, HyreCar’s operations and prospects were misrepresented because the Company was not on track to meet the financial estimates provided to investors during the Class Period, and such estimates lacked a reasonable basis in fact, including HyreCar’s purported gross margin, EBITDA and net loss trajectories.