Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, April 10, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises HireRight Holdings Corporation (“HireRight” or the “Company”) (NYSE: HRT) investors that a lawsuit was filed on behalf of investors that purchased HireRight securities pursuant and/or traceable to the Offering Documents issued in connection with HireRight’s October 2021 initial public offering (the “IPO” or “Offering”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
On November 1, 2021, HireRight initiated its IPO, selling around 22 million shares of common stock at $19.00 per share.
Then, on January 19, 2023, Seeking Alpha reported findings from brokerage and investment banking firm Stifel, indicating that HireRight had significant exposure to large technology firms, thereby facing heightened employment and hiring risks. Stifel also noted that a substantial portion of the company's growth stemmed from existing client hiring rather than new client acquisitions.
Upon this revelation, HireRight's stock price plummeted by $0.88, or 7.5%, settling at $10.75 per share on January 19, 2023, causing harm to investors.
The class action complaint alleges that the Offering Documents were negligently crafted and contained materially false and/or misleading statements. It is claimed that these documents failed to disclose crucial adverse facts about the Company's business, operations, and prospects. Specifically, it is alleged that HireRight was exposed to customers with substantial employment and hiring risk, relying heavily on existing client hiring for revenue growth rather than acquiring new clients. Consequently, it is argued that the company's revenue growth was unsustainable, as it depended on the stability of current customers' hiring and the profitability of securing new clients. The complaint further alleges that HireRight overstated its post-IPO business and prospects, rendering Defendants' positive statements about the company's business, operations, and prospects materially misleading and lacking reasonable basis throughout the relevant period.
Please visit our website to review more information and submit your transaction information.
The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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