Kessler Topaz Meltzer & Check filed a securities fraud class action against Hertz Global Holdings over liquidity disclosures, covering shares bought between May 7 and June 23, 2026. The lead plaintiff deadline is Sept. 22. Hertz shares plunged more than 40 percent on June 24 after the company announced a dilutive capital raise and cut its earnings outlook.
Hertz Global Holdings faces a securities fraud class action over liquidity disclosures, with investors seeking lead plaintiff status by Sept. 22.
The lawsuit, filed in the US District Court for the Middle District of Florida, alleges Hertz misrepresented how quickly its liquidity was deteriorating and that used-car market softness was "transitory," Kessler Topaz Meltzer & Check said. The firm is representing purchasers of Hertz common stock between May 7 and June 23, 2026.
The complaint, captioned Schweitzer v. Hertz Global Holdings, No. 26-cv-02242, claims Hertz's available liquidity was not sufficient to fund operations for the next twelve months without a distressed, dilutive financing. It also alleges the used-car softness management had called "isolated to the quarter" was depressing net depreciation per unit and Adjusted Corporate EBITDA, and that a dilutive capital raise was likely.
Hertz shares fell $2.06, or more than 40 percent, to close at $3.00 on June 24, after the company announced a $300 million offering of exchange senior first-lien secured PIK notes due 2030 and a share-lending offering of more than 37 million shares. Hertz also cut its second-quarter Adjusted Corporate EBITDA outlook to a range of $50 million to $80 million, citing "unexpected softness in the used car market" that caused losses on vehicle sales in May.
The announcement came weeks after management assured investors that liquidity would be "sufficient to fund our operating activities and obligations for the next twelve months and for the foreseeable future thereafter," with projected year-end liquidity "north of $1.5 billion."
The lead plaintiff deadline is Sept. 22, 2026. Investors who bought Hertz stock during the class period may seek appointment as lead plaintiff, which typically goes to the investor or group with the largest financial interest. The case's outcome will determine whether shareholders recover losses tied to the June 24 decline, which followed the company's reversal on its liquidity and used-car outlook.
This article is for informational purposes only and does not constitute investment advice.
