Lawsuit filed for Investors in shares of Hertz Global Holdings, Inc. (NASDAQ: HTZ)

An investor, who purchased shares of Hertz Global Holdings, Inc. (NASDAQ: HTZ), filed a lawsuit over alleged violations of Federal Securities Laws by Hertz Global Holdings, Inc.

Investors who purchased shares of Hertz Global Holdings, Inc. (NASDAQ: HTZ) have certain options and for certain investors are short and strict deadlines running. Deadline: July 30, 2024. NASDAQ: HTZ investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Estero, FL based Hertz Global Holdings, Inc. operates as a vehicle rental company. Hertz Global Holdings, Inc. offers both internal combustion engine ("ICE") vehicle and electric vehicle ("EV") rental services from Company-operated, licensee, and franchisee locations across various countries. The Company also sells vehicles and value-added services. With hundreds of thousands of vehicles in its rental fleet, accurately measuring vehicle depreciation-i.e., the decrease in value of the various vehicles in its fleet over time-is critical to Hertz's profitability.

In October 2021, Hertz Global Holdings, Inc. announced that, "[a]s consumer interest in [EVs] skyrockets," the Company made "a significant investment to offer the largest EV rental fleet in North America and one of the largest in the world[,]" including "an initial order of 100,000 Teslas by the end of 2022 and new EV charging infrastructure across the company's global operations." Hertz Global Holdings, Inc. thereafter entered into multiple strategic partnerships with cities and others to promote its EV rental business, and concurrently continued to expand its EV fleet.

Then on January 11, 2024, Hertz Global Holdings, Inc. revealed in a filing with the U.S. Securities and Exchange Commission that it would sell approximately 20,000 EVs from its U.S. fleet, or about one-third of its global EV fleet, "to better balance supply against expected demand of EVs." According to the Company, this would "result in the recognition, during the fourth quarter of 2023, of approximately $245 million of incremental net depreciation expense related to the sale[,]" which "represents the write down of the EVs' carrying values as of December 31, 2023 to their fair values, less related expenses associated with the disposition of the vehicles." Hertz Global Holdings, Inc. further advised that "Adjusted Corporate EBITDA for the fourth quarter of 2023 will 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 March 15, 2024, Hertz Global Holdings, Inc. announced that Stephen M. Scherr would resign from his roles as the Company's Chief Executive Officer ("CEO") and Chairman of the Board of Directors by the end of the month, and that the Company had appointed Wayne Gilbert West as its new CEO.
Then, on April 25, 2024, Hertz Global Holdings, Inc. announced its first quarter 2024 results. Among other items, Hertz Global Holdings, Inc. reported adjusted diluted earnings-per-share ("EPS") of -$1.28 for the quarter, well short of the consensus estimate of -$0.43, and far worse than the adjusted diluted EPS of $0.39 that the Company had achieved in the same period the year prior. In discussing these results, Hertz revealed that vehicle depreciation in the quarter increased $588 million, or $339 on a per-unit basis, primarily driven by deterioration in estimated forward residual values and disposition losses on ICE vehicles compared to gains in the prior-year quarter. The Company also disclosed that, of the $339 per unit increase, $119 was related to EVs held for sale. Moreover, Hertz reported a $195 million charge to vehicle depreciation to write down EVs held for sale that were remaining in inventory at quarter-end to fair value and to recognize the disposition losses on EVs sold in the period.

Shares of Hertz Global Holdings, Inc. (NASDAQ: HTZ) declined from $19.36 per share on July 12, 2023, to as low as $4.215 per share on May 31, 2024.

The plaintiff claims that between April 27, 2023 and April 24, 2024, the Defendants made false and/or misleading statements and/or failed to disclose that Hertz Global Holdings, Inc. had downplayed the financial impact of vehicle depreciation, and/or overstated its ability to track and manage vehicle depreciation, that demand for Hertz's EVs was not as strong as Defendants had led investors to believe, that Hertz Global Holdings, Inc. had too many vehicles, particularly EVs, in its fleet to remain profitable, that as a result of all the foregoing, Hertz Global Holdings, Inc. was likely to incur significant losses on the disposition of both its ICE vehicles and EVs, that all the foregoing was likely to, and did, have a significant negative impact on Hertz's financial results, and that as a result, the Company's public statements were materially false and misleading at all relevant times.

Those who purchased shares of Hertz Global Holdings, Inc. (NASDAQ: HTZ) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.