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November 20, 2024, UPDATE: The Court has rescheduled the Settlement Fairness Hearing to March 6, 2025, at 10:00 a.m., in Courtroom 10D.

Notice of Pendency of Class Action:  Please be advised that your rights may be affected by the above-captioned securities class action (the “Action”) pending in the United States District Court for the Central District of California (the “Court”), if, during the period between May 13, 2021 through August 10, 2021, both dates inclusive (the “Settlement Class Period”), you purchased or otherwise acquired publicly traded common stock of HyreCar Inc. (“HyreCar” or the “Company”) and were damaged thereby.[1]

Notice of Settlement:  Please also be advised that the Court-appointed Lead Plaintiff, Turton Inc. (“Lead Plaintiff”), on behalf of itself and the Settlement Class (as defined in ¶ 27of the Notice), has reached a proposed settlement of the Action for $1,900,000.00 in cash that, if approved, will resolve all claims in the Action (the “Settlement”).

PLEASE READ THE NOTICE CAREFULLY.  The Notice explains important rights you may have, including the possible receipt of cash from the Settlement.  If you are a member of the Settlement Class, your legal rights will be affected whether or not you act.

If you have any questions about the Notice, the proposed Settlement, or your eligibility to participate in the Settlement, please DO NOT contact HyreCar, any of the Defendants in the Action, or their counsel.  All questions should be directed to Lead Counsel or the Claims Administrator (see ¶ 88 of the Notice).  

1. Description of the Action and the Settlement Class:  The Notice relates to a proposed Settlement of claims in a pending securities class action brought by investors alleging, among other things, that defendant HyreCar (prior to its bankruptcy), Joseph Furnari and Robert Scott Brogi (collectively, “Defendants”)[2] violated the federal securities laws by making false and misleading statements regarding HyreCar. A more detailed description of the Action is set forth in paragraphs 11-26 of the Notice.  The proposed Settlement, if approved by the Court, will settle claims of the Settlement Class, as defined in paragraph 27 of the Notice.

2. Statement of the Settlement Class’s Recovery:  Subject to Court approval, Lead Plaintiff, on behalf of himself and the Settlement Class, has agreed to settle the Action in exchange for a settlement payment of $1,900,000.00 in cash (the “Settlement Amount”) to be deposited into an escrow account.  The Net Settlement Fund (i.e., the Settlement Amount plus any and all interest earned thereon (the “Settlement Fund”) less (a) any Taxes, (b) any Notice and Administration Costs, (c) any Litigation Expenses awarded by the Court, and (d) any attorneys’ fees awarded by the Court) will be distributed in accordance with a plan of allocation that is approved by the Court, which will determine how the Net Settlement Fund shall be allocated among members of the Settlement Class.  The proposed plan of allocation (the “Plan of Allocation”) is set forth on pages 9-12 of the Notice.

3. Estimate of Average Amount of Recovery Per Share:  Based on Lead Plaintiff’s damages expert’s estimates of the number of shares of HyreCar common stock purchased during the Settlement Class Period that may have been affected by the conduct at issue in the Action conduct at issue in the Action, and assuming that all Settlement Class Members elect to participate in the Settlement, Lead Plaintiff estimates an average recovery (before the deduction of any Court-approved fees, expenses and costs as described herein) per eligible security is $0.20.  Settlement Class Members should note, however, that the foregoing average recovery per share is only an estimate.  Some Settlement Class Members may recover more or less than this estimated amount depending on, among other factors, the number of shares of HyreCar common stock they purchased, when and at what prices they purchased/acquired or sold their HyreCar common stock, and the total number of valid Claim Forms submitted.  Distributions to Settlement Class Members will be made based on the Plan of Allocation set forth herein (see pages 9-12 of the Notice) or such other plan of allocation as may be ordered by the Court.

4. Average Amount of Damages Per Share:  The Parties do not agree on the average amount of damages per share or the amount that would be recoverable if Lead Plaintiff was to prevail in the Action.  Among other things, the Individual Defendants do not agree with the assertion that they violated the federal securities laws or that any damages were suffered by any members of the Settlement Class as a result of their conduct.

5. Attorneys’ Fees and Expenses Sought:  Plaintiff’s Counsel, which have been prosecuting the Action on a wholly contingent basis since its inception in 2021, have not received any payment of attorneys’ fees for their representation of the Settlement Class and have advanced the funds to pay expenses necessarily incurred to prosecute this Action.  Court-appointed Lead Counsel, Glancy Prongay & Murray LLP, will apply to the Court for an award of attorneys’ fees for all Plaintiff’s Counsel in an amount not to exceed 33⅓% of the Settlement Fund.  In addition, Lead Counsel will apply for reimbursement of litigation costs and expenses paid or incurred in connection with the institution, prosecution and resolution of the claims against the Defendants, in an amount not to exceed $163,500, and an application for reimbursement of the reasonable costs and expenses incurred by Lead Plaintiff directly related to its representation of the Settlement Class in an amount not to exceed $10,000.  Any fees and expenses awarded by the Court will be paid from the Settlement Fund.  Settlement Class Members are not personally liable for any such fees or expenses.  Estimates of the average cost per affected share of HyreCar common stock, if the Court approves Lead Counsel’s fee and expense application, is $0.08 per eligible share.

6. Identification of Attorneys’ Representatives:  Lead Plaintiff and the Settlement Class are represented by Ex Kano Sams II, Esq. of Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles, CA 90067, (310) 201-9150, settlements@glancylaw.com.

7. Reasons for the Settlement:  Lead Plaintiff’s principal reason for entering into the Settlement is the substantial immediate cash benefit for the Settlement Class without the risk or the delays inherent in further litigation.  Moreover, the substantial cash benefit provided under the Settlement must be considered against the significant risk that a smaller recovery – or indeed no recovery at all – might be achieved after contested motions, a trial of the Action and the likely appeals that would follow a trial.  This process could be expected to last several years.  Individual Defendants, who deny all allegations of wrongdoing or liability whatsoever, are entering into the Settlement solely to eliminate the uncertainty, burden and expense of further protracted litigation. 

[1]  All capitalized terms used on this website that are not otherwise defined herein shall have the meanings ascribed to them in the Stipulation and Agreement of Settlement dated March 20, 2024 (the “Stipulation”), which is available on the Important Documents Page of this site.

[2]  Defendants Furnari and Brogi are collectively referred to herein as the “Individual Defendants.”  The term “Parties” means the Individual Defendants and the Lead Plaintiff.