HyreCar Gets First Approval for $1.9 Million Investor Settlement

HyreCar Inc., a now-bankrupt car rental platform for gig workers, may proceed with an agreement to settle investors’ securities fraud claims for $1.9 million, a federal court ruled.

The amount of the settlement is reasonable in light of the risks of litigation and recovery, Judge Fred W. Slaughter said in an order docketed Monday in the US District Court for the Central District of California.

Even though the investors estimated maximum damages of $96 million, they said in their request for approval that HyreCar’s resources were “rapidly depleting” because of legal defense costs, according to Slaughter. The company has needed ...