NEW YORK, April 03, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against HireRight Holdings Corporation (HireRight or the Company) (NYSE: HRT) in the United States District Court for the Middle District of Tennessee on behalf of all persons and entities who purchased or otherwise acquired HireRight securities pursuant and/or traceable to the Offering Documents issued in connection with HireRight's October 2021 initial public offering (the IPO or Offering), both dates inclusive (the Class Period). Investors have until June 3, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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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 Company offers background screening, verification, identification, monitoring, and drug and health screening services for customers under the HireRight brand name and boasts a purportedly robust pipeline of opportunities developed by [its] sales team to continue to attract new customers and take share in the market.
On October 6, 2021, HireRight filed a registration statement on Form S-1 with the SEC in connection with the IPO, which, after an amendment, was declared effective by the SEC on October 28, 2021 (the Registration Statement).
On November 1, 2021, HireRight filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (the Prospectus and, collectively with the Registration Statement, the Offering Documents).
That same day, pursuant to the Offering Documents, HireRight's common stock began publicly trading on the New York Stock Exchange (NYSE) under the ticker symbol HRT.
Pursuant to the Offering Documents, HireRight issued approximately 22. million shares of its common stock to the public at the Offering price of $19.00 per share for proceeds to the Company of approximately $399 million after applicable underwriting discounts and commissions, and before expenses.
According to the complaint, the Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation. Specifically, the Offering Documents made false and/or misleading statements and/or 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; (iii) accordingly, HireRight had overstated its post-IPO business and/or prospects; and (iv) as a result, Defendants' statements about the Company's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On January 19, 2023, Stifel, a brokerage and investment banking firm, downgraded HireRight's stock from a Hold to a Buy, 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.
At the time of the Complaint's filing, HireRight's common stock continue to trade below the $19.00 per share IPO price.
If you purchased or otherwise acquired HireRight shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com