Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Hertz Global Holdings, Inc.

Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) ( http://www.rgrdlaw.com/cases/hertz/) today announced that a class action has been commenced in the United States District Court for the District of New Jersey on behalf of purchasers of Hertz Global Holdings, Inc. (“Hertz”) (NYSE:HTZ) common stock during the period between February 25, 2013 and November 4, 2013 (the “Class Period”).

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/hertz/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Hertz and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Hertz, based in Park Ridge, New Jersey, is one of the nation’s largest automobile and equipment rental companies.

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.

After reporting quarter after quarter of purportedly “record” financial results during the Class Period, which defendants claimed supported the Company’s strong fiscal 2013 guidance, suddenly, on September 26, 2013, Hertz issued a press release entitled “Hertz Revises Full Year 2013 Guidance.” The release made substantial revisions to the guidance the Company had consistently maintained it was on track to reach since February 2013. On this news, the price of Hertz stock fell by more than $4 per share, or 16%, to close at $21.63 per share.

Then, on November 4, 2013, after the close of trading, Hertz issued a press release announcing its third quarter 2013 financial results for the quarter ended September 30, 2013. The release disclosed that on a GAAP basis, Hertz’s net income fell to $214.7 million, or $0.47 per share, from $242.9 million, or $0.55 per share, in the third quarter of 2012, and disclosed for the first time Hertz’s exposure to Simply Wheelz’s insolvency. The next morning, Simply Wheelz announced that it was filing for protection under the federal bankruptcy statutes. On this news, the price of Hertz stock dropped further, falling $2.50 per share, or 10.50%.

Plaintiff seeks to recover damages on behalf of all purchasers of Hertz common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in ten offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.

Copyright Business Wire 2010

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