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HyreCar Faces Claims That Insurance Deceit Inflated Stock Price

Dec. 6, 2022, 6:25 PM

Investors may pursue claims that peer-to-peer car rental platform HyreCar Inc. used a conflicted insurance adjuster to delay damage payments and underfund its reserves, causing a 50% stock-price drop when the company corrected its practices.

The shareholders also adequately pleaded their claims that the company’s CEO and its then-CFO pulled the strings, Judge Fred W. Slaughter said Monday for the US District Court for the Central District of California.

Lead plaintiff Turton Inc. alleges that HyreCar, which rents vehicles to gig workers driving for rideshare and delivery services, engaged Genoteq as its insurance adjuster without disclosing links between the companies ...