Schall, Brown & Schwartz files securities class action against Hertz Global Holdings

Schall, Brown & Schwartz LLP said it filed a federal securities class action on behalf of purchasers of Hertz Global Holdings, Inc. common stock between May 7, 2026 and June 23, 2026, alleging violations of the Securities Exchange Act of 1934. The complaint, filed as Cameron Schweitzer v. Hertz Global Holdings, Inc. et al., No. 2:26-cv-02242 in the Middle District of Florida, names Hertz and certain of its top executive officers. The suit centers on Hertz’s statements after it reported first-quarter 2026 results on May 7, when it highlighted its strongest revenue growth in three years, a 13% year-over-year improvement in Net Depreciation per Unit per Month to $312, and about $837 million of liquidity, supplemented by roughly $200 million from an April financing. On the earnings call, Hertz’s Chief Financial Officer said the company expected to end the second quarter with just under $1 billion of liquidity and the year “north of $1.5 billion,” while its subsequent Form 10-Q said cash, liquidity facilities and refinancing options would be sufficient to fund operations and obligations for the next twelve months and for the foreseeable future thereafter. According to the complaint, those statements were materially false and misleading because Hertz’s liquidity was deteriorating more quickly than represented, weakness in the used-car market was recurring rather than temporary, and the company was likely to pursue a distressed, dilutive capital raise. On June 24, 2026, Hertz announced a planned $300 million offering of Exchangeable Senior First-Lien Secured PIK Notes due 2030 alongside a share-lending offering of more than 37 million shares from which the company would receive no proceeds, while also warning that unexpected softness in the used-car market had caused losses on vehicle sales in May and would cut second-quarter Adjusted Corporate EBITDA to $50 million to $80 million. Hertz shares fell more than 40% to close at $3.00 that day, and the next day the offering was priced on more dilutive terms, upsized to $350 million, with an option to increase to $400 million, carrying a 6.75% coupon and an exchange price of about $3.58 per share, while the borrowed common stock was sold to the public at $2.70 per share.