Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased 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.
Investors suffering losses on their Hertz investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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, 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
