Hertz Faces Class Action Lawsuit After Stock Plunge

The legal action, filed by Wolf Haldenstein Adler Freeman & Herz LLP, centers on allegations that Hertz misled shareholders regarding its financial health. On May 7, the company reported its strongest revenue growth in three years and claimed that its liquidity facilities and refinancing options were sufficient to cover obligations for at least twelve months. However, the narrative shifted abruptly on June 24.

That day, Hertz announced a $300 million note offering and a concurrent share-lending program. Simultaneously, the company disclosed that softness in the used car market had triggered significant losses on vehicle sales, slashing its expected second-quarter Adjusted Corporate EBITDA to between $50 million and $80 million. The market reaction was immediate, with Hertz stock plummeting over 40% to close at $3.00 per share. By the following day, the company had upsized its debt offering to $350 million at a 6.75% coupon, further diluting shareholder value. Investors seeking to participate in the litigation or provide information are directed to contact Gregory Stone at the firm.