The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Hertz Global Holdings, Inc. (HTZ) Investors

By: The Law Offices of Frank R. Cruz via Business Wire

June 10, 2024 at 12:06 PM EDT

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Hertz Global Holdings, Inc. (“Hertz” or the “Company”) (NASDAQ: HTZ) securities between April 27, 2023 and April 24, 2024, inclusive (the “Class Period”). Hertz investors have until July 30, 2024 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On January 11, 2024, Hertz disclosed that it would be selling approximately 20,000 electric vehicles (“EVs”) from its US rental fleet, about one-third of its global EV fleet, “to better balance supply against expected demand of EVs.” The Company advised that “Adjusted Corporate EBITDA for the fourth quarter of 2023 [would] be negatively impacted by the incremental net depreciation expense associated with the EV sales plan, and further burdened by higher depreciation expense in the ordinary course as residual values for vehicles generally fell throughout the quarter greater than previously expected.”

On this news, Hertz’s stock price fell $0.40, or 4.3%, to close at $8.95 per share on January 11, 2024, thereby injuring investors.

Then, on April 25, 2024, Hertz released its first quarter 2024 financial results, falling short of consensus estimates. The Company stated that vehicle depreciation in the quarter increased $588 million, primarily driven by deterioration in estimated forward residual values and disposition losses on internal combustion engine (“ICE”) vehicles compared to gains in the prior-year quarter. Additionally, Hertz reported a $195 million charge to vehicle depreciation to write down EVs held for sale that were remaining in inventory.

On this news, Hertz’s stock price fell $1.12, or 19.3%, to close at $4.68 per share on April 25, 2024, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Hertz had downplayed the financial impact of vehicle depreciation, and/or overstated its ability to track and manage vehicle depreciation; (2) demand for Hertz’s EVs was not as strong as Defendants had led investors to believe; (3) Hertz had too many vehicles, particularly EVs, in its fleet to remain profitable; (4) as a result of all the foregoing, Hertz was likely to incur significant losses on the disposition of both its ICE vehicles and EVs; (5) all the foregoing was likely to, and did, have a significant negative impact on Hertz’s financial results; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased Hertz securities during the Class Period, you may move the Court no later than July 30, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Hertz securities, have information or 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240610146636/en/

The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Hertz Global Holdings, Inc. (HTZ) Investors

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The Law Offices of Frank R. Cruz, Los Angeles

Frank R. Cruz, 310-914-5007

info@frankcruzlaw.com

www.frankcruzlaw.com

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The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Hertz Global Holdings, Inc. (HTZ) Investors

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