SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of those who purchased or acquired the securities of Hertz Global Holdings, Inc. (“Hertz” or the “Company”) (NYSE:HTZ) between February 22, 2012 and June 6, 2014, inclusive (the “Class Period”).
If you purchased or acquired Hertz securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than August 15, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Hertz investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Hertz Securities Class Litigation
The action charges Hertz and certain of its officers with violations of the Securities Exchange Act of 1934. Hertz is one of the largest automobile and equipment rental companies in the United States.
The complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (i) that Hertz had accounting errors; (ii) that, consequently, the Company’s revenue and financial results were overstated; (iii) that the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (iv) that the Company lacked adequate internal and financial controls; and (v) that, due to the foregoing, the Company’s financial statements from 2011 through June 6, 2014 were materially false and misleading at all relevant times.
On June 6, 2014, Hertz announced that the Audit Committee of the Company’s Board of Directors had determined that Hertz’s financial statements filed with the Securities and Exchange Commission on Form 10-K for the fiscal year ended December 31, 2013 should no longer be relied upon. According to Hertz, during the preparation of the First Quarter 10-Q for the period ended March 31, 2014, “errors were identified relating to Hertz’s conclusions regarding the capitalization and timing of depreciation of certain non-fleet assets, allowances for doubtful accounts in Brazil, as well as other items.” Subsequently, Hertz identified additional errors related to allowances for uncollectible amounts with respect to renter obligations for damaged vehicles and restoration obligations at the end of facility leases.
According to Hertz’s June 6, 2014 announcement, the Audit Committee consulted with management, analyzed the aforementioned adjustments, and concluded that the 2011 financial statements will need to be restated and should no longer be relied upon. In addition, the Audit Committee warned of the possibility of further material adjustments to the financial records for fiscal years 2011, 2012, and/or 2013. The Company further announced that it intends to amend its Form 10-Q for the period ended March 31, 2014 and its 10-K for the year ended December 31, 2013.
On this news, the price of Hertz common stock fell $2.76 per share, or 9.1%, from a closing price of $30.49 on June 5, 2014, to close at $27.73 per share on June 6, 2014, on extremely heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for eleven years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have also named Lieff Cabraser as a “Law Firm of the Year” each year the publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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