NEWTOWN, PA / ACCESSWIRE / November 28, 2023 / The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of Holley Inc. ("Holley") (NYSE:HLLY) common stock between July 21, 2021, and February 6, 2023, inclusive (the "Class Period").
Investors who purchased Holley Inc. common stock may move the U.S. District Court for the Western District of Kentucky to appoint them as lead plaintiffs, no later than January 5, 2024. Current holders of Holley stock may pursue corporate governance reforms. Please contact Edelson Lechtzin LLP at 844-696-7492 to discuss your investment losses, or by e-mail at elechtzin@edelson-law.com. A copy of the class action complaint can be viewed HERE.
Background on Holley Inc. f/k/a Empower Ltd.
Headquartered in Bowling Green, Kentucky, Holley specializes in designing, manufacturing, and distributing high-performance automotive products. Their products are primarily sold in the United States, Canada, and Europe. Holley offers a wide range of automotive products, including carburetors, fuel injection systems, exhaust products, transmission products, and automotive software.
The Securities Fraud Claims
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or omissions regarding Holley's business, operations, and prospects, including that: (i) due to Holley's emphasis on its direct-to-consumer (DTC) channel, the company's relationships with resellers and distributors, who previously contributed substantially to Holley's revenue, suffered significant harm; (ii) Holley utilized discounting to grow its DTC channel, which harmed its relationship with resellers and distributors by undercutting its historically maintained pricing discipline; (iii) Holley's relationships with resellers and distributors have been strained, resulting in a decrease in their purchases of Holley products. They have also been returning products at a significant level, which is far above the historical norms. Additionally, they have been increasing their purchases of competitors' products; (iv) Holley's growing DTC channel could not offset the negative financial impact of Holley's growing strained relationships with its resellers and distributors, and as a result, Holley's critical relationship with resellers and distributors was deteriorating; (v) Holley had failed to successfully integrate and capture synergies from its numerous acquisitions, which left Holley with inefficient operations, excess costs, and inventory management problems; and (vi) Holley received a temporary boost in sales and performance due to the COVID-related stimulus money. However, the defendants allegedly misled investors by making them believe that the growth was sustainable and a result of strong demand, which supported their positive financial guidance. This growth was unsustainable and temporary, but investors were led to believe otherwise.
On July 28, 2022, Holley announced preliminary financial results that were lower than expected and reduced its full-year 2022 outlook, causing the price of Holley stock to drop by over 47% in just two trading sessions.
On November 14, 2022, the Company announced more disappointing financial results for the third quarter of 2022. On this news, the price of Holley stock fell 6.85%.
On February 6, 2023, Holley announced the immediate retirement of its CEO and President, Tom Tomlinson. Michelle Gloeckler was appointed as Interim President and CEO while the Company searched for a permanent CEO with the help of Heidrick & Struggles, a company retained by the Board for succession planning. On this news, the price of Holley stock fell more than 27% over two trading sessions.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
SOURCE: Edelson Lechtzin LLP
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