NEW YORK, Oct. 01, 2021 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, is investigating claims of violations of federal securities laws on behalf of investors of HyreCar, Inc. (“HyreCar” or the “Company”) (NASDAQ: HYRE). If you are a shareholder of HyreCar with more than $50,000 in losses, you should contact the Firm.
On August 10, 2021, after the market had closed, HyreCar issued a press release announcing 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. Furthermore, 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 at $0.8 million (less than one third the Company's gross profit in the second quarter of 2020), with a gross profit margin of just 24%.
Contemporaneously with the release, HyreCar filed with the U.S. Securities and Exchange Commission a Form 10-Q which disclosed that the Company 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." On an earnings call, when asked whether HyreCar was actually on track to achieve 45% to 50% gross margins in the near term as previously represented, the Company's Chief Financial Officer 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, HyreCar's stock price fell $9.27 per share, or 48.5%, to close at $9.85 per share on August 11, 2021.
If you are a shareholder of HyreCar and wish to participate, learn more, or discuss the issues surrounding the investigation, please contact our attorneys at (914) 733-7256 or via email at investigations@lowey.com.
Whistleblowers: Persons with non-public information regarding HyreCar should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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Lowey Dannenberg P.C.
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Tel: (914) 733-7256
Email: investigations@lowey.com
