DEADLINE ALERT: Faruqi & Faruqi, LLP investigates claims on behalf of Hertz Global Holdings investors

James (Josh) Wilson, securities litigation partner at Faruqi & Faruqi, LLP, encourages investors who have suffered losses of over $100,000 in Rivian to contact him directly to discuss their options

If you incurred losses exceeding $100,000 on investments in Hertz stock or options between April 27, 2023 and April 24, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi Partner Josh Wilson direct at 877-247-4292 or 212-983-9330 (extension 1310). For more information you can also click here: www.faruqilaw.com/HTZ.

New York, New York–(Newsfile Corp. – June 25, 2024) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Hertz Global Holdings, Inc. (“Hertz” or the “Company”) (NASDAQ: HTZ) and reminds investors of the July 30, 2024 deadline to claim lead plaintiff status in a class action lawsuit in federal securities court filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. Since its founding in 1995, the firm has recovered hundreds of millions of dollars for investors. See www.faruqilaw.com.

As described in detail below, the Complaint alleges that the Company and its executives violated federal securities laws by making materially false and misleading statements about the Company’s business, operations and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Hertz downplayed the financial impact of the Vehicles’ impairment and/or overstated its ability to track and manage the Vehicles’ impairment; (2) demand for Hertz’s electric vehicles was not as strong as Defendants had led investors to believe; (3) Hertz had too many vehicles, particularly electric vehicles, in its fleet to remain profitable; (4) as a result of all of the foregoing, Hertz will likely incur significant losses on the sale of both its internal combustion engine vehicles and its electric vehicles; (5) all of the foregoing will likely have, and did, have, a material adverse effect on Hertz’s financial results; and (vi) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On January 11, 2024, Hertz announced in an SEC filing that it would sell approximately 20,000 electric vehicles from its U.S. fleet, or approximately one-third of its global electric vehicle fleet, “to better align supply with expected demand for electric vehicles.” According to the company, this would “result in the recognition of approximately $245 million of incremental net depreciation expense related to the sale in the fourth quarter of 2023,” which “equals the write-down of the carrying values ​​of the electric vehicles as of December 31, 2023 to their fair value less related costs associated with the disposition of the vehicles.” Hertz further noted that “the Company’s Adjusted EBITDA for the fourth quarter of 2023 will be negatively impacted by the incremental net depreciation expense related to the electric vehicle sales plan and will be additionally impacted by higher depreciation expense in the normal course of business as vehicle residual values ​​generally declined more than previously expected during the quarter.”

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.

Then, on April 25, 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 far below the adjusted diluted EPS of $0.39 the Company achieved in the same period last year. In discussing these results, Hertz disclosed that vehicle depreciation increased by $588 million, or $339 per unit, in the quarter, primarily due to deterioration in estimated 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 unit increase, $119 was attributable to electric vehicles held for sale. In addition, Hertz reported a $195 million vehicle depreciation charge to write down to fair value the electric vehicles held for sale that were still in inventory at the end of the quarter and to account for capital losses on electric vehicles sold during the same 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.

The court-appointed lead plaintiff will be the investor with the greatest financial interest in the relief sought by the class, who is reasonable and typical of class members, and who will direct and oversee the litigation on behalf of the putative class. Any member of the putative class may, through counsel of his or her choosing, ask the court to serve as lead plaintiff, or he or she may choose to do nothing and remain an absent class member. Your ability to share in any relief will not be affected by your decision to serve as lead plaintiff.

Faruqi & Faruqi, LLP also encourages anyone with information regarding Hertz’s conduct, including whistleblowers, former employees, shareholders and others, to contact the company.

Learn more about the Hertz Global Holdings Class action lawsuit, go to www.faruqilaw.com/HTZ or Call Faruqi & Faruqi Partner Josh Wilson direct at 877-247-4292 or 212-983-9330 (extension 1310).

Follow us for updates on LinkedIn, on X or on Facebook.

Attorney Advertising. The law firm responsible for this advertising is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar outcome with respect to future cases. We welcome the opportunity to discuss your specific case. All communications will be kept confidential.

To view the original version of this press release, please visit https://www.newsfilecorp.com/release/214355