Robbins LLP is Investigating the Allegations that HireRight Holdings Corp. (HRT) Filed Misleading Documents in Connection with its IPO
Robbins LLP informs investors that a shareholder filed a class action on behalf of all stockholders who purchased or otherwise acquired HireRight Holdings Corp. (NYSE: HRT) securities pursuant to or traceable to the Offering Documents issued in connection with the Company’s October 2021 initial public offering (“IPO”). HireRight provides technology-driven workforce risk management and compliance solutions to a customer base characterized as a “diverse set of organizations, from large-scale multinational businesses to small and medium-sized businesses, across a broad range of industries.”
The Allegations
On November 1, 2021, HireRight began publicly trading on the NYSE under the ticker symbol HRT. The complaint alleges that the Offering Documents in support of the IPO were negligently prepared. Specifically, they failed to disclose that: (i) HireRight was exposed to customers with significant employment and hiring risk and the Company derived greater revenue growth from existing client hiring than from new client hiring; (ii) as a result, the Company’s revenue growth was unsustainable to the extent that it relied on the stability of its current customers’ hiring and/or the profitability of securing new customers; and (iii) accordingly, HireRight had overstated its post-IPO business and/or prospects.
On January 19, 2023, Stifel, a brokerage and investment banking firm, downgraded HireRight’s stock to a Hold, prompting several market analysts to issue publications discussing the downgrade. For example, Seeking Alpha reported that Stifel found HireRight to be exposed to large technology firms where there is more acute employment and hiring risk, and that more of the Company’s growth comes from existing client hiring than from new. On this news, HireRight’s stock price fell $0.88 per share, or 7.5%, to close at $10.75 per share on January 19, 2023. The stock now trades significantly below the $19.00 per share IPO price.
What Now: You may be eligible to participate in the class action against HireRight Holdings Corp. Shareholders who want to serve as lead plaintiff for the class should contact Robbins LLP. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
