Key Takeaways:
Investors who bought Hertz (NASDAQ: HTZ) stock between May 7 and June 23 face a Sept. 22 deadline to lead a securities fraud class action.
"Timely disclosure of material developments is fundamental to fair and efficient markets," Joseph E. Levi, a partner at Levi & Korsinsky, said. "The complaint alleges that Hertz investors received liquidity and fleet-management assurances shortly before a dilutive financing and a major guidance reduction."
Hertz shares fell more than 40 percent, or $2.06, to close at $3.00 on June 24, 2026, after the company announced a $300 million offering of exchange senior first-lien secured PIK notes due 2030 and a concurrent share-lending offering of more than 37 million shares. The company also cut its second-quarter Adjusted Corporate EBITDA guidance to a range of $50 million to $80 million, citing "unexpected softness in the used car market."
The lawsuit, filed in the U.S. District Court for the Middle District of Florida as Schweitzer v. Hertz Global Holdings, Inc., alleges Hertz misrepresented its liquidity and the severity of used-car market weakness. The complaint claims Hertz's available liquidity was not sufficient to fund operations for the next twelve months without a distressed, dilutive financing, and that the used-car softness the company had characterized as "isolated to the quarter" and "transitory" had recurred, depressing net depreciation per unit and Adjusted Corporate EBITDA.
On May 7, Hertz reported first-quarter results emphasizing $837 million of liquidity, $200 million in additional April asset-backed securities financing, and progress toward its net depreciation per unit target. The following day, the company's Form 10-Q stated that cash, liquidity facilities, and refinancing options would be sufficient to fund operating activities for the next twelve months, with projected year-end liquidity "north of $1.5 billion."
The complaint further alleges that Hertz's "Back-to-Basics" strategy — which management had touted as a means to stabilize vehicle depreciation — failed to prevent the residual value deterioration that drove the June 24 guidance cut. The company's net depreciation per unit metric, a key indicator of fleet economics, was materially depressed by the used-car market weakness.
Kessler Topaz Meltzer & Check, which is not the filing firm, is among several law firms — including Rosen Law Firm and Levi & Korsinsky — reminding affected investors of the deadline. A lead plaintiff is typically the investor or small group with the largest financial interest who is adequate and typical of the proposed class. Investors who purchased during the class period and sold at a loss may be eligible to participate regardless of whether they still hold shares.
The September 22 deadline will determine who directs the litigation on behalf of the class. Hertz's next earnings report will show whether the used-car market weakness that triggered the June 24 guidance cut has persisted into the third quarter.
This article is for informational purposes only and does not constitute investment advice.
