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HyreCar Faces Preliminary Investor Suit on Insider Trading Fears

June 24, 2022, 7:46 PM

HyreCar Inc., which rents vehicles to gig workers driving for Uber Technologies Inc. and Lyft Inc., is facing investor litigation in Delaware over concerns that the company’s leaders made millions selling stock at prices inflated by a scheme to cover up insurance losses.

The lawsuit, filed Thursday, seeks internal files to investigate suspicions that HyreCar’s board chairman and top executives sold substantial sums of stock shortly before its share price plunged 50% on news that affiliated insurers had significantly understated its claims liability through self-dealing.

“The scheme began to unravel” when HyreCar was forced to switch to an independent third-party ...