Hertz Global Holdings, Inc. (NASDAQ: HTZ)

This lawsuit is for anyone who acquired securities in Hertz Global Holdings, Inc. (NASDAQ: HTZ) from April 27, 2023 through April 24, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by telling investors that the Company had in place sufficient internal controls to track depreciation of the Company’s vehicle fleet but then by severely underestimating the depreciation of its vehicles, particularly the Company’s electric vehicles.

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, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on April 25, 2024, Hertz released its first quarter 2024 financial results, falling short of consensus estimates. The Company stated that 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, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Hertz Global Holdings, Inc. (NASDAQ: HTZ) from April 27, 2023 through April 24, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.