NEW YORK, Oct. 01, 2021 (GLOBE NEWSWIRE) – Lowey Dannenberg PC, a law firm leading in obtaining redress for consumers and investors, is investigating allegations of violations of federal securities laws in name of the investors of HyreCar, Inc. (“HyreCar” or the “Company”) (NASDAQ: HYRE). If you are a HyreCar shareholder with more than $ 50,000 in losses, you should contact the Firm.
On August 10, 2021, after the market 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 against losses of $ 3.8 million in 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 adjusted EBITDA loss of $ 1.7 million incurred in the second quarter of 2020) and its gross margin for the second quarter of 2021 was $ 0.8 million (less than a third of gross profit in the second quarter of 2020), with a gross profit margin of just 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 really 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 up to the sky” 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.
If you are a HyreCar shareholder and would like to participate, learn more or discuss issues related to the investigation, please contact our attorneys at (914) 733-7256 or by email at [email protected]
Whistleblowers: Those with non-public information regarding HyreCar should consider their options to assist with the investigation or take advantage of the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards totaling up to 30% of any successful recovery made by the SEC.
About Lowey Dannenberg
Lowey Dannenberg is a nationwide firm representing institutional and individual investors who have suffered financial losses resulting from corporate fraud and embezzlement in violation of federal securities and antitrust laws. The firm has significant experience in multi-million dollar lawsuits and has already recovered billions of dollars on behalf of investors.
Lowey Dannenberg PC 44 South Broadway, Suite 1100 White Plains, NY 10601 Tel. : (914) 733-7256 Email: [email protected]
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