SAN DIEGO, Oct. 16, 2021 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of investors of HyreCar Inc. ("HyreCar" or the "Company") (NASDAQ: HYRE). The class action is on behalf of shareholders who purchased HyreCar common stock between May 14, 2021 and August 10, 2021. If you wish to serve as lead plaintiff in this class action, you must move the Court no later than October 26, 2021.

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The complaint alleges that during the class period, Defendants issued materially false and misleading statements and failed to disclose that: (a) HyreCar had materially understated its insurance reserves; (b) HyreCar had systematically failed to pay valid insurance claims incurred prior to the Class Period; (c) HyreCar had incurred significant expenses transitioning to its new third-party insurance claims administrator and processing claims incurred from prior periods; (d) HyreCar had failed to appropriately price risk in its insurance products and was experiencing elevated claims incidence as a result; (e) 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) as a result, 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 (earnings before interest, taxes, depreciation, and amortization), and net loss trajectories.

A lead plaintiff will act on behalf of all other class members in directing the HyreCar class-action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the class-action lawsuit.  An investor's ability to share any potential future recovery of the HyreCar class action lawsuit is not dependent upon serving as lead plaintiff.

If you suffered a substantial loss and are interested in learning more about being a lead plaintiff, please contact Jim Baker ([email protected]) by email or phone at 619-814-4471. If emailing, please include a phone number.

Additionally, you can [click here to join this action]. There is no cost or obligation to you.

About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
[email protected]

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SOURCE Johnson Fistel, LLP