HireRight Holdings Corporation
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
If you choose to take no action, you can remain an absent class member.
Joining the case through the Portnoy Law website enables investors to learn about their legal claims and take an active role in recovering their losses.
The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
On November 1, 2021, HireRight initiated its IPO, selling around 22 million shares of common stock at $19.00 per share.
Then, on January 19, 2023, Seeking Alpha reported findings from brokerage and investment banking firm Stifel, indicating that HireRight had significant exposure to large technology firms, thereby facing heightened employment and hiring risks. Stifel also noted that a substantial portion of the company’s growth stemmed from existing client hiring rather than new client acquisitions.
Upon this revelation, HireRight’s stock price plummeted by $0.88, or 7.5%, settling at $10.75 per share on January 19, 2023, causing harm to investors.
The class action complaint alleges that the Offering Documents were negligently crafted and contained materially false and/or misleading statements. It is claimed that these documents failed to disclose crucial adverse facts about the Company’s business, operations, and prospects. Specifically, it is alleged that HireRight was exposed to customers with substantial employment and hiring risk, relying heavily on existing client hiring for revenue growth rather than acquiring new clients. Consequently, it is argued that the company’s revenue growth was unsustainable, as it depended on the stability of current customers’ hiring and the profitability of securing new clients. The complaint further alleges that HireRight overstated its post-IPO business and prospects, rendering Defendants’ positive statements about the company’s business, operations, and prospects materially misleading and lacking reasonable basis throughout the relevant period.
