Olshan Achieves Trial Victory in Delaware Bankruptcy Court

On May 27, 2026, Olshan’s Litigation team secured a significant trial victory on behalf of clients Anson Funds and Sabby Management in the U.S. Bankruptcy Court for the District of Delaware. Following a bench trial held in September 2025, the court issued a decision finding in favor of Olshan’s clients on their fraud claim and awarding approximately $4.8 million in damages, representing 100 percent of their claims. The dispute arose from a $4 million equity investment in HyreCar, Inc. in early 2023. The day before the investment closed, Hyrecar’s primary lender had issued a Notice of Default, a fact known only to Hyrecar’s then CEO. Less than a month later, HyreCar publicly disclosed the Notice of Default and that the lender had begun to liquidate all collateral; within weeks Hyrecar filed for Chapter 11 bankruptcy protection. While Anson and Sabby were aware of certain challenges facing the company, they had structured their investment with the expectation that a capital infusion would help stabilize the business and support ongoing restructuring efforts. During the bankruptcy proceedings, Olshan utilized the discovery tools available through the Chapter 11 process to obtain documents from the company’s lender and other third parties. The investigation revealed previously undisclosed information concerning HyreCar’s relationship with its lender, including that HyreCar’s CEO had not informed the company’s board, investment bank or outside counsel about the Notice of Default. Olshan filed a complaint against HyreCar’s former CEO, alleging fraud based on the failure to disclose material information to investors. Through extensive discovery, witness preparation and trial advocacy, Olshan developed evidence that met the high standard to prove fraud, leading the court to find that the undisclosed lender communication materially altered the risk profile facing the company at the time of the investment. Olshan Litigation partner Adrienne Ward led the litigation team that represented Anson Funds and Sabby Management, which included counsel Jacqueline Y. Ma as trial counsel.