Robbins LLP is Investigating Allegations that Hertz's Available Liquidity was Insufficient to Fund its Operations and Obligations and the Company Would Have to Resort to a Distressed, Dilutive Financing

Robbins LLP informs investors that a securities class action has been filed on behalf of all persons who purchased or otherwise acquired Hertz Global Holdings, Inc. (NASDAQ: HTZ) common stock between February 28, 2024 and February 25, 2026, inclusive (the "Class Period"). Investors who suffered significant losses during the Class Period may be eligible to participate in the lawsuit and should contact Robbins LLP for information about becoming lead plaintiff.

Why Was Hertz Sued?

The complaint alleges that Hertz made materially false or misleading statements regarding its business, operations, and financial condition during the Class Period.

Specifically, the lawsuit alleges that defendants failed to disclose:

• Hertz’s liquidity was deteriorating far more rapidly than represented, and the Company’s available liquidity was not sufficient to fund its operations and obligations for the next twelve months without resorting to a distressed, dilutive financing;
• the softness in the used-car market that defendants had characterized as “isolated to the quarter” and “transitory” had in fact recurred and was materially depressing the Company’s net depreciation per unit (“DPU”) and Adjusted Corporate EBITDA;
• because of the foregoing, the Company was likely to undertake a dilutive, distressed capital raise that would materially harm existing shareholders; and
• therefore, defendants’ positive statements about the Company’s business, operations, and liquidity position were materially false and misleading and lacked a reasonable basis at all relevant times.

What Happened?

On June 24, 2026, before the market opened, and just weeks after assuring investors that the Company’s liquidity would be “sufficient to fund our operating activities and obligations for the next twelve months and for the foreseeable future thereafter” and projected year-end liquidity “north of $1.5 billion,” Hertz announced a massive dilutive capital raise. Through its wholly-owned indirect subsidiary, Hertz intended to offer $300 million of Exchangeable Senior First-Lien Secured PIK Notes due 2030, together with a concurrent share-lending offering of more than 37 million shares of common stock from which the Company would receive no proceeds, and simultaneously disclosed that “unexpected softness in the used car market” had caused losses on the sale of vehicles in May 2026 and would drive second-quarter Adjusted Corporate EBITDA down to a range of just $50 million to $80 million.

Investors were shocked. And on this news, the price of Hertz’s common stock declined more than 40% to close at $3.00 per share on June 24, 2026.

The very next day, the offering priced on still more dilutive terms, upsized to $350 million (up to $400 million) at a 6.75% coupon with an exchange price of approximately $3.58 per share, and with the borrowed common stock sold to the public at just $2.70 per share.

Are You Eligible: The lawsuit seeks to represent investors who purchased or otherwise acquired Hertz common stock from February 28, 2024 and February 25, 2026. Investors who suffered losses during that period may have legal rights under the federal securities laws. Submit a form for more information.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.