Hertz Global Holdings ($HTZ) Investor Settlement

The parties have reached an agreement to settle the case, but the terms are still being finalized. You can submit your application now, and it will be processed once claims filing opens.

M.D. Florida

Court

2:24-cv-00513

Case number

01/06/2023

Class period Start

04/24/2024

Class period End

Hertz Global Holdings has agreed to a tentative settlement to resolve investor claims that it misled investors about demand for its EV rental fleet, its charging infrastructure, and the financial impact of its EV strategy.

Outline:

In October 2021, Hertz announced a plan to build one of the largest EV rental fleets in North America. By summer 2022, EV demand had allegedly weakened as customers faced charging problems and were reluctant to rent the vehicles. In October 2023, January 2024, and April 2024, Hertz disclosed steps to shrink the fleet and record major write-downs, and $HTZ fell. In March 2026, the parties decided to settle the lawsuit.

Timeline:

October 25, 2021: Hertz announced plans to build the largest EV rental fleet in North America and said it had placed an initial order for 100,000 Tesla EVs.
April 4, 2022: Hertz announced a strategic partnership with Polestar to purchase 65,000 EVs over five years.
September 20, 2022: Hertz announced plans to purchase 175,000 EVs from General Motors over the following five years.
October 26, 2023: Hertz disclosed it needed to tighten EV supply and better match its fleet to demand.
January 11, 2024: Hertz disclosed it would sell 20,000 EVs and take a $245 million write-down tied to the vehicles’ carrying values.
March 15, 2024: Hertz announced that CEO Stephen Scherr would step down, effective April 1, 2024.
April 25, 2024: Hertz disclosed it would sell another 10,000 EVs and recorded an additional $195 million write-off.
March 2026: The parties decided to settle the lawsuit.
Background:

Hertz rents vehicles under the Hertz, Dollar, and Thrifty brands across 160 countries. In 2021 and 2022, the company made EV expansion a major part of its growth strategy and announced large vehicle supply deals with Tesla, Polestar, and GM. Hertz promoted that effort as a way to build one of the largest EV rental fleets in North America.

The dispute centers on what happened after those plans were put in motion. According to the allegations, EV demand weakened by mid-2022 because customers did not want to rent the vehicles, charging infrastructure was not adequate, and many renters were unfamiliar with or dissatisfied with the EV driving experience. The shareholders also allege Hertz had internal systems and reports showing weak EV utilization while continuing to present demand and fleet trends more positively to investors.

As the problems grew, Hertz allegedly lowered EV pricing, pushed more EVs into the fleet, and later began increasing sales of those vehicles because they were not being rented. By January 2024, Hertz disclosed it would sell 20,000 EVs, or about one-third of the fleet, and take a $245 million write-down. In April 2024, Hertz disclosed plans to sell another 10,000 EVs and recorded an additional $195 million write-off.

Investors claim those disclosures revealed the gap between Hertz’s public messaging and the underlying demand for its EV strategy. The case says the stock declined sharply across the corrective disclosures, including a combined drop of 54% as the market absorbed the scale of the EV-related issues. The matter has now moved to a proposed settlement.

What Can Investors Expect Now?

Hertz Global Holdings has agreed to a tentative settlement to resolve investor claims that it misled investors about demand for its EV rental fleet, its charging infrastructure, and the financial impact of its EV strategy.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.

Case Type

US Securities Class Action

Case Status

Tentative Settlement

Alleged Offence

Mismanagement,

Misleading Statements,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Filing date

05/31/2024

Lead Plaintiff Deadline

07/30/2024

Plaintiffs

Robert Stephens

Attorneys

Bernstein Liebhard LLP; Levi & KorsinskyLLP

Defendants

Stephen M. Scherr, Alexandra Brooks

Trades matching type

FIFO

Frequently Asked Questions

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