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Important Update on Hertz Global Holdings Class Action

Levi & Korsinsky, LLP, a law firm specialized in securities litigation, has alerted investors regarding a pending class action lawsuit against Hertz Global Holdings, Inc. This alert specifically targets shareholders who purchased securities during the period from May 7, 2026, to June 23, 2026. The lead plaintiff deadline is September 22, 2026, and potential investors are encouraged to verify their eligibility for recovering losses related to their investments in Hertz.

The lawsuit emerged following a significant decline of over 40% in Hertz’s share prices after the company announced a substantial exchangeable notes offering amounting to $300 million and a concurrent share-lending option involving more than 37 million shares. Along with these announcements, Hertz revealed disappointing second-quarter Adjusted Corporate EBITDA guidance, which was projected between a mere $50 million to $80 million. Joseph E. Levi, Esq., a spokesperson for the law firm, emphasizes the need for transparency around material risks that could impact investor decisions, particularly in regard to Hertz's characterization of market pressures as temporary.

Allegations Underlying the Lawsuit

The lawsuit contends that Hertz misrepresented the state of the used-car market, suggesting that the underlying weaknesses were transitory and confined to a specific quarter. However, according to the claims, these weaknesses were already influencing the rental company’s economics and residual values before the stock price drop. The allegations raise concerns about Hertz's Back-to-Basics strategy that touted fleet rotation discipline and the management of depreciation per unit, suggesting a lack of full disclosure to investors regarding the risks and potential impacts on future earnings.

Key Issues Raised by Investors

The lawsuit highlights several critical aspects that investors should consider:

• - Reliance on Resale Values: Hertz's rental model heavily relies on the resale values of used vehicles. A downturn in those values can significantly impact profit margins.
• - Mischaracterization of Market Conditions: While management claimed that the softness in the used-car market was temporary, the lawsuit argues that these pressures were more prolonged and recurrent than disclosed.
• - Impacts on Financial Performance: Underlying issues regarding fleet depreciation, characterized by a purported improvement towards the company's targets, were not adequately communicated, leading to discrepancies between investor expectations and actual outcomes.

Investors also worry about how such depreciations could severely impair anticipated earnings in the near term. The fluctuating conditions of the used-car market can directly affect profitability, given the cyclical nature of vehicle purchasing, renting, and resale.

The Legal Landscape and Next Steps

The class action was filed in the United States District Court for the Middle District of Florida, Ft. Myers Division, governed by the Private Securities Litigation Reform Act of 1995. Investors seeking to participate and potentially recuperate losses must file necessary documents including brokerage statements or trade confirmations detailing their purchase history and share quantities.

For those who sold their Hertz shares prior to this class action, it is significant to note that eligibility for recovery is based on purchase timing rather than current possession of shares. Therefore, individuals who bought shares during the defined class period and sold them at a loss could still partake in the proceedings.

As the case progresses, Levi & Korsinsky remains a trusted ally for investors navigating the complexities of securities litigation, reflecting two decades of commitment to securing justice for aggrieved shareholders. Investors interested in learning more about their rights or potential recoveries are urged to reach out to the law firm directly by calling (212) 363-7500.