HireRight Holdings Corporation (NYSE: HRT) Securities Fraud Class Action

LEAD PLAINTIFF DEADLINE IS JUNE 3, 2024. 

If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.

Case Background:

A class action lawsuit has been filed on behalf of those who purchased or acquired HireRight Holdings Corporation (“HireRight”) (NYSE: HRT) pursuant and/or traceable to the registration statement and prospectus issued in connection with HireRight’s October 2021 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." HireRight 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 with the SEC in connection with the IPO, which, after an amendment, was declared effective by the SEC on October 28, 2021. On November 1, 2021, HireRight filed a prospectus 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 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.

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 complaint alleges 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, HireRight'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.

At the time of the filing of the class action complaint against HireRight, HireRight's common stock continued to trade below the $19.00 per share IPO price.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP:  Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com.