Holley Inc. (HLLY) f/k/a Empower Ltd. (EMPW) Misled Investors Regarding its Ability to Integrate Acquisitions and Achieve Cost Synergies
A shareholder filed a class action lawsuit on behalf of persons who purchased or otherwise acquired Holley Inc. (NYSE: HLLY) securities between July 21, 2021 and February 6, 2023. On July 16, 2021, Empower, a special purpose acquisition corporation, completed a business combination with Holley Intermediate Holdings, Inc., a privately held company, and began trading as Holley Inc. Holley designs, manufactures, and distributes performance automotive products to customers primarily in the United States, Canada, and Europe.
According to the complaint, during the class period, defendants made false and misleading statements. Plaintiffs allege that defendants touted to investors that Holley was well-prepared to weather an economic downturn thanks to sticky demand from car and truck enthusiasts as well as the Company’s seemingly successful growth through M&A strategy, which had purportedly resulted in successful integrations and significant cost synergies. Defendants also touted the Company’s transition to and increasing direct-to-consumer (“DTC”) sales that did not require Holley to sell through its network of resellers, which would lead to organic sales growth at high profit margins. In reality, however, Holley failed to successfully integrate its acquisitions or achieve cost synergies, and by focusing on expanding its DTC sales, Holley was severely damaging its critical relationships with resellers. Holley’s sales and profitability suffered as a result.
The truth was revealed through a series of disclosures beginning on July 28, 2022. Upon each disclosure, the Company’s share price declined. At the end of the class period, the stock closed at $2.13 per share, down approximately 85% from the class period peak of $14.52 per share on March 16, 2022.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Holley Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by January 5, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.