SAN DIEGO, June 20, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of individuals and entities who purchased or otherwise acquired securities of Hertz Global Holdings, Inc. (NASDAQ: HTZ) between April 27, 2023 and April 24, 2024. Hertz is a car rental company that rents both internal combustion engine (“ICE”) and electric vehicles (“EV”) at company-owned locations and at locations of licensees and franchisees in various countries.
For more information, submit a form, email Attorney Aaron Dumas, Jr., or call us at (800) 350-6003.
The accusations: Robbins LLP is investigating allegations that Hertz Global Holdings, Inc. (HTZ) misled investors about the financial impact of vehicle depreciation and lack of demand for electric vehicles
According to the complaint, during the Class Period, defendants failed to disclose that: (i) Hertz downplayed the financial impact of the vehicles’ depreciation and/or overstated its ability to track and manage the vehicles’ depreciation; (ii) demand for Hertz’s electric vehicles was not as strong as defendants had led investors to believe; (iii) Hertz had too many vehicles, particularly electric vehicles, in its fleet to remain profitable; (iv) as a result of all of the foregoing, Hertz would likely incur significant losses on the sale of both its internal combustion engine vehicles and its electric vehicles; and (v) all of the foregoing would likely have, and did, have, a material adverse effect on Hertz’s financial results.
The plaintiff alleges that on April 24, 2024, Hertz issued a press release announcing its first quarter 2024 results. Among other things, Hertz reported adjusted diluted earnings per share (“EPS”) of -$1.28 for the quarter, well below the consensus estimate of -$0.43 and well below the adjusted diluted EPS of $0.39 the company achieved during the same period last year. In discussing these results, Hertz disclosed that vehicle depreciation increased by $588 million, or $339 per share, during the quarter, primarily due to deterioration in estimated future residual values and disposal losses on internal combustion engine vehicles compared to earnings in the prior year quarter. The company also disclosed that of the $339 per share increase, $119 was attributable to electric vehicles held for sale. In addition, Hertz reported a $195 million vehicle write-down to write down to fair value the electric vehicles for sale that were still in inventory at the end of the quarter and to account for losses on electric vehicles sold during the period. 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.
What now: You may be eligible to participate in the Hertz Global Holdings, Inc. class action lawsuit. Shareholders who wish to serve as lead plaintiff for the class action lawsuit must file their motions with the Court by July 30, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible to receive compensation. If you choose not to take action, you may remain an absent class member. For more information, click here Here.
Representation is on a contingency basis. Shareholders pay neither fees nor expenses.
About Robbins LLP: Some law firms issuing press releases on this matter do not litigate securities class actions; Robbins LLP does. As a recognized leader in shareholder litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures and hold corporate executives accountable for wrongdoing since 2002. Since our founding, we have recovered more than $1 billion for shareholders.
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