Hertz investors sued after stock drops more than 40% on June 24

A proposed securities class action against Hertz Global Holdings, Inc. covers purchasers of common stock from May 7, 2026 to June 23, 2026 and alleges the company misled investors about used-car market weakness, DPU trends and liquidity before turning to a dilutive financing. The complaint points to Hertz's May 7 first-quarter release touting its "Strongest Revenue Growth in Three Years," improved DPU metrics and a solid liquidity and capital position, and to next-day assurances that cash, liquidity facilities and refinancing options were sufficient for the next 12 months. The suit says those statements were undercut when Hertz disclosed on June 24 that unexpected softness in the used-car market had produced losses on vehicle sales in May, cut second-quarter Adjusted Corporate EBITDA guidance to $50 million to $80 million, and announced $300 million of exchangeable senior first-lien secured PIK notes plus a share-lending transaction involving more than 37 million shares. Shares fell more than 40% to $3.00 that day, and the financing was priced the next day on more dilutive terms, upsized to $350 million, with a potential increase to $400 million, a 6.75% coupon, an exchange price of about $3.58 and borrowed shares sold at $2.70. Investors have until September 22, 2026 to seek lead plaintiff status.