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 2013