Hertz(US:HTZ) Prnewswireยท2024-07-30 13:00Core Viewpoint - Hertz Global Holdings, Inc. is facing a securities class action lawsuit for alleged violations of federal securities laws, including fraudulent misrepresentations and omissions regarding its business and operations, leading to significant investor losses [1]. Group 1: Allegations and Financial Impact - On January 11, 2024, Hertz announced the sale of approximately 20,000 electric vehicles from its U.S. fleet, which is about one-third of its global EV fleet, resulting in an expected $245 million incremental net depreciation expense in Q4 2023 [3]. - Following this announcement, Hertz's stock price dropped by $0.40 per share, or 4.28%, closing at $8.95 per share [3]. - On April 25, 2024, Hertz reported a first-quarter 2024 EPS of -$1.28, significantly below the consensus estimate of -$0.43 and worse than the adjusted diluted EPS of $0.39 from the same period the previous year [5]. - The company also disclosed a $588 million increase in vehicle depreciation, primarily due to deteriorating estimated forward residual values and disposition losses on internal combustion engine vehicles [5]. - Following the Q1 results announcement, Hertz's stock price fell by $1.12 per share, or 19.31%, closing at $4.68 per share [6]. Group 2: Leadership Changes - On March 15, 2024, Hertz announced the resignation of its CEO and Chairman of the Board, with a new CEO appointed shortly thereafter [4]. Group 3: Legal Proceedings - Investors affected by Hertz's alleged misconduct can seek to be appointed as lead plaintiffs in the class action lawsuit by July 30, 2024 [7]. - The class action complaint is filed in the United States District Court for the Middle District of Florida under the case name Doller v. Hertz Global Holdings, Inc., et al. [7].