A securities class action has been filed in the USDC – M.D.TN. against HireRight Holdings Corporation (HRT) (“HireRight” or the “Company”), on behalf of all persons and entities that who purchased or otherwise acquired HireRight securities pursuant and/or traceable to the Prospectus and the Registration Statement (the “Offering Documents”) issued in connection with HireRight’s October 2021 initial public offering (the “IPO” or “Offering”).
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.”
The Complaint alleges that 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:
(1) 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;
(2) 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;
(3) accordingly, HireRight had overstated its post-IPO business and/or prospects; and
(4) 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, thereby harming investors.
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 this Complaint, HireRight’s common stock continue to trade below the $19.00 per share IPO price.
If you purchased HireRight securities pursuant and/or traceable to the Prospectus and the Registration Statement (the “Offering Documents”) issued in connection with HireRight’s October 2021 initial public offering (the “IPO” or “Offering”) and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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