Securities,
Civil Litigation
Feb. 23, 2022
Scienter unproven though officers sold shares before price drop, judge says
“Plaintiff has failed to adequately allege any actionable misrepresentation or omission,” U.S. District Judge Percy Anderson ruled. “None of the facts alleged in the [first amended complaint] make plaintiff’s theory more likely than these innocent explanations,” he wrote, offering hypothetical reasons for HyreCar to have been slow to pay insurance claims or later speeding up payments.
A federal judge granted Latham & Watkins' motion to dismiss a securities class action complaint against client HyreCar Inc. finding the plaintiffs failed to sufficiently allege falsity by company executives and insiders who sold hundreds of thousands of shares a month before the web-based car sharing marketplace's stock declined by 52%.
"Plaintiff has failed to adequately allege any actionable misrepresentation or omission," U.S. Distr...
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