SHAREHOLDER ALERT: Law firm Pomerantz is investigating claims on behalf of investors from HyreCar, Inc.

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NEW YORK, October 15, 2021 / PRNewswire / – Pomerantz LLP is investigating claims on behalf of investors in HyreCar, Inc. (“HyreCar” or the “Company”) (NASDAQ: HYRE). These investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.

Fighting for victims of securities fraud for over 85 years (PRNewsfoto / Pomerantz LLP)

The purpose of the investigation is to determine whether HyreCar and any of its officers and / or directors have engaged in securities fraud or other illegal business practices.

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At August 10, 2021, after the market closed, HyreCar issued a press release announcing deeply disappointing results for the quarter ended June 30, 2021 (“Q2 2021”), including net losses of $ 9.3 million compared to the losses of $ 3.8 million at the same period the previous year. In addition, the Company’s adjusted EBITDA loss for the second quarter of 2021 was $ 7.1 million (four times higher than the $ 1.7 million adjusted EBITDA loss suffered in the second quarter of 2020) and its gross margin for the second quarter of 2021 was fair $ 0.8 million (less than a third of the Company’s gross margin in the second quarter of 2020), with a gross profit margin of only 24%. Along with the publication, HyreCar filed with the United States Securities and Exchange Commission a Form 10-Q which revealed that the company incurred skyrocketing sales costs during the quarter, mainly due to the ” significantly higher incidence of insurance claims, including claims before March 31, 2021 “beyond the reserves”. On a call for results, when asked if HyreCar is actually on track to achieve gross margins of 45-50% in the short term, as depicted previously, the chief financial officer of the company basically said removed this objective, calling it a “shoot skyward” objective. and stating that “aiming for a margin greater than 40%” was more realistic.

On this news, HyreCar’s share price fell $ 9.27 per share, or 48.5%, to close at $ 9.85 per share on August 11, 2021.

Pomerantz LLP, with offices in new York, Chicago, Los Angeles, Paris, and Tel Aviv, is recognized as one of the leading firms in the areas of corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class actions bar, Pomerantz was a pioneer in the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and corporate misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomlaw.com.

CONTACT:

Robert S. Willoughby
Pomerantz srl
[email protected]
888-476-6529 ext 7980

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SOURCE Pomerantz LLP

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