SAN DIEGO and
PARK RIDGE, N.J.
Nov. 21, 2013
/PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP
that an investor of Hertz Global Holdings, Inc. (NYSE: HTZ) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of New Jersey. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between
February 25, 2012
November 4, 2013
(the "Class Period"). Hertz, through its subsidiaries, engages in the car and equipment rental businesses worldwide.
Hertz Share Price Falls on Unexpected Downward Guidance Revision
Shares of Hertz fell
, or nearly 16%, to close at
September 26, 2013
, following the company's announcement that it was revising its full-year 2013 guidance. Then, on
November 5, 2013
, Hertz shares fell an additional
, or 10.50%, to close at
following the company's announcement of disappointing third quarter earnings. For the quarter, Hertz reported net income fell to
as compared to
for the same quarter 2012. On that same day, the company also revealed for the first time that Hertz has substantial exposure to the insolvent company, Simply Wheelz, LLC, through its recently divested Advantage Rent A Car subsidiary.
According to the complaint, Hertz made materially false or misleading statements and failed to disclose information regarding the company's business prospects and operations. Specifically, the complaint alleges that Hertz grossly overstated demand for its U.S. airport rentals and the value of its fleet. Further, the complaint alleges that Hertz failed to disclose its exposure to the insolvency of Advantage and that the two companies disagreed on the value of the Advantage fleet assets.