NEWTOWN, Pa., June 14, 2024 (GLOBE NEWSWIRE) — Edelson Lechtzin LLP, a leading class action law firm, is investigating securities fraud claims on behalf of all investors of Hertz Global Holdings, Inc. (NASDAQ: HTZ) between April 27, 2023, and April 24, 2024, inclusive (the “Class Period”).
Investors who purchased Hertz stock may move the U.S. District Court for the Middle District of Florida to appoint them as lead plaintiff, no later than July 30, 2024. Please contact Edelson Lechtzin LLP at 844-696-7492 to discuss your investment losses, or by e-mail at elechtzin@edelson-law.com. A copy of the class action complaint can be viewed HERE.
What is the Role of a Lead Plaintiff?
The lead plaintiff is a court-appointed representative of a class of purchasers of securities in a class action under the federal securities fraud laws. The lead plaintiff selects the attorneys who will represent the class in the lawsuit. Among other things, the lead plaintiff reviews the complaint, stays informed about the progress of the case, and if necessary, provides testimony at trial.
Background on Hertz Global Holdings, Inc.
Hertz is a vehicle rental company based in Estero, Florida. Additionally, the company sells vehicles and offers other related services.
The Securities Fraud Claims
In October 2021, Hertz announced a significant investment to expand its electric vehicle (EV) rental fleet, including an initial order of 100,000 Tesla EVs by the end of 2022, and a new EV charging infrastructure. They also formed partnerships to promote their EV rental business and continued to expand their EV fleet.
Throughout the Class Period, the Complaint alleges that Defendants made false and misleading statements, including that: (i) Hertz had underestimated the financial impact of vehicle depreciation and/or overstated its ability to track and manage vehicle depreciation; (ii) demand for Hertz’s EVs was not as strong as Defendants had led investors to believe; (iii) Hertz had too many vehicles, particularly EVs, in its fleet to remain profitable; (iv) as a result of the foregoing, Hertz was likely to incur significant losses on the disposition of both its internal combustion engine (“ICE”) vehicles and EVs; and (v) all the foregoing was likely to, and did, have a significant negative impact on Hertz’s financial results.
On January 11, 2024, Hertz revealed its plan to sell 20,000 electric vehicles from its U.S. fleet, causing an expected $245 million in additional depreciation expenses for the fourth quarter of 2023. On this news, Hertz’s stock price fell $0.40 per share, or 4.28%, to close at $8.95 per share on January 11, 2024.
On March 15, 2024, Hertz announced that its CEO would step down by the end of the month, and that Wayne Gilbert West would become its new CEO. Then, on April 25, 2024, Hertz reported an adjusted diluted earnings-per-share of -$1.28 for the first quarter, missing the consensus estimate. The company attributed increased vehicle depreciation to declines in estimated future residual values and losses on the sale of ICE vehicles. Additionally, Hertz reported a $195 million charge for vehicle depreciation to adjust the value of remaining electric vehicles held for sale in inventory at quarter-end. On this news, Hertz’s stock price fell $1.12 per share, or 19.31%, to close at $4.68 per share on April 25, 2024.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
Edelson Lechtzin LLP is a leading class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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