Hertz(US:HTZ) Prnewswireยท2024-07-25 13:35Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Hertz Global Holdings, Inc. due to allegations of violations of federal securities laws related to misleading statements about the company's business and financial health [1][2]. Summary by Relevant Sections Allegations Against Hertz - The complaint alleges that Hertz and its executives made materially false and misleading statements regarding the company's operations, including downplaying the financial impact of vehicle depreciation and overstating demand for electric vehicles (EVs) [2]. - Specific claims include that Hertz had too many vehicles in its fleet, particularly EVs, which would lead to significant losses on vehicle dispositions and negatively impact financial results [2]. Stock Price Impact - Following the news of the allegations, Hertz's stock price fell by $1.12 per share, or 19.31%, closing at $4.68 per share on April 25, 2024 [3]. - Additionally, on January 11, 2024, Hertz's stock price decreased by $0.40 per share, or 4.28%, closing at $8.95 per share [6]. Financial Disclosures - Hertz announced plans to sell approximately 20,000 EVs, which would result in a $245 million increase in net depreciation expense for the fourth quarter of 2023 [11]. - In its first quarter 2024 results, Hertz reported an adjusted diluted earnings-per-share of -$1.28, significantly below the consensus estimate of -$0.43, and a $588 million increase in vehicle depreciation, primarily due to losses on internal combustion engine (ICE) vehicles and EVs [11].