Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether certain officers or directors of Hertz Global Holdings, Inc. (NYSE: HTZ) violated state or federal laws in connection with statements regarding Hertz business, operations and financial prospects. A class action lawsuit against the Company has already been filed on behalf of shareholders who purchased Hertz between February 25, 2013 and November 4, 2013 (the “Class Period”). Frank Johnson, partner at Johnson & Weaver, had this to say about the lawsuit: “If the Company’s officers or directors are responsible for the damage to the Company, then they should be held accountable rather than the Company and its shareholders.”
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s financial performance and future prospects, failing to disclose that: (a) Hertz was losing sales in the all-important airport market, which offers higher rental prices and margins than off-airport, longer-term “replacement car” locations; (b) Hertz had significant undisclosed exposure to the insolvency of Advantage Rent A Car (“Advantage”) subsidiary Simply Wheelz LLC (“Simply Wheelz”), a wholly-owned subsidiary of Hertz that operated its Advantage business; (c) Hertz and Advantage were engaged in a disagreement over the value of the Advantage fleet assets; (d) Hertz was carrying the value of its fleet transferred to Advantage and its subsidiary Simply Wheelz on its books at an artificially inflated level; and (e) as a result of the foregoing, Hertz lacked a reasonable basis for the positive statements about its business, earnings and prospects during the Class Period.
If you have held shares continuously since February 2013 or earlier, you may have standing to hold the Company harmless from the damage the officers and directors caused by making them personally responsible. You may also be able to assist in reforming the Company’s corporate governance to prevent future wrongdoing.