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Hertz faces class action after shares plunge 40% on dilutive financing and lowered earnings guidance

Market News
09 Sep 2026
PRNewsWire
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Bearish
Hertz faces class action after shares plunge 40% on dilutive financing and lowered earnings guidance

Hertz Global Holdings is facing a class action lawsuit from investors who bought shares between May 7 and June 23, 2026, after the company's stock dropped over 40%. The decline followed Hertz's announcement of a $300 million dilutive financing deal, a share-lending transaction, and a reduction in second-quarter EBITDA guidance to $50-$80 million. Investors allege that Hertz misled them about liquidity and used-car market conditions, causing a sharp repricing of the stock. The lawsuit claims the company failed to disclose risks related to dilution, liquidity, and fleet economics before the June 24 announcement. The lead plaintiff deadline is September 22, 2026.

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