Hertz Global Holdings, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Hertz Global Holdings, Inc. (HTZ)

If you purchased Hertz Global Holdings securities prior to April 27, 2023, and still hold some shares today, you may be able to seek corporate reforms, the return of funds back to the Company, and a court approved incentive award for you, all at absolutely no cost.

About Hertz Global Holdings

Hertz is a Delaware corporation headquartered in Estero, Florida. The Company operates the Hertz, Dollar, and Thrifty rental brands at roughly 11,000 locations worldwide.

It reports results across two main segments: Americas Rent-A-Car (RAC) and International RAC, and maintains one of the world’s largest vehicle fleets.

What’s Being Investigated

This investigation examines whether certain Hertz officers and directors breached their duties by making materially false or misleading statements or by failing to disclose key facts about fleet depreciation, electric-vehicle demand, and fleet size. According to allegations in a class action complaint, Hertz allegedly downplayed the financial hit from depreciation and overstated its ability to manage it, overstated demand for EV rentals, and kept an oversized fleet that hurt profitability.

Investors further allege these issues led to foreseeable losses on sales of both EVs and ICE vehicles and materially distorted Hertz’s results. Relevant events cited in the complaint include Hertz’s January 11, 2024 disclosure of a plan to sell about 20,000 EVs with a related $245 million incremental depreciation charge, the March 15, 2024 announcement of a CEO transition, and the April 25, 2024 report of a $588 million year-over-year increase in vehicle depreciation together with a $195 million EV write-down and an expanded plan to sell 30,000 EVs in 2024.

On October 10, 2025, a U.S. District Court denied Hertz’s motion to dismiss claims related to two alleged misstatements about customer demand for EVs, allowing those claims to proceed.

Key Timeline

• July 27, 2023: The Company reported second-quarter earnings and again emphasized “high demand” and “healthy margins.” Investors allege these statements concealed mounting depreciation costs and fleet-mix issues.
• October 26, 2023: Hertz announced “record revenue” for Q3 2023. The complaint alleges this release misrepresented profitability by downplaying rapidly rising depreciation expenses.
• January 11, 2024: Hertz filed an SEC Form 8-K revealing plans to sell approximately 20,000 EVs, or one-third of its global EV fleet, and to record $245 million in incremental net depreciation expense. The stock fell 4.3%.
• February 2024: Hertz’s Q4 2023 results and annual report allegedly continued to mislead investors by suggesting depreciation risks “could” occur, despite the Company already knowing its fleet was overvalued.
• March 15, 2024: Hertz announced CEO Stephen Scherr would resign; Wayne Gil West was named successor. Investors allege the leadership change reflected internal awareness of mounting operational and financial strain.
• April 25, 2024: Hertz disclosed a $588 million increase in vehicle depreciation and a $195 million EV write-down, expanding its EV sales plan to 30,000 vehicles. Shares fell 19% to close at $4.68.
• April 26, 2024: Following these disclosures, Bank of America downgraded Hertz to _Underperform_ and slashed its price target from $9 to $3, citing liquidity and fleet-value risks.

Why Investors May Be Concerned

Investors allege that Hertz’s board and management failed to maintain adequate systems to monitor critical risks such as vehicle depreciation and EV demand. The complaint contends that oversight failures and misleading statements about these risks caused significant financial harm and eroded shareholder value.

The class action complaint also alleges that directors ignored warning signs about declining residual values and oversupply within the fleet, exposing the Company to substantial write-downs, liquidity pressures, and credibility concerns with investors and analysts.

Your Rights and Next Steps

This is an ongoing investigation into potential breaches of fiduciary duty and alleged securities fraud at Hertz. If you held Hertz securities during the relevant period, you may have certain rights.

Potential next steps:

• Request corporate records under Delaware law (Section 220) to investigate possible wrongdoing.
• Pursue shareholder claims on behalf of the Company to recover losses or seek governance reforms.
• Seek corporate accountability measures, such as strengthened oversight systems, enhanced reporting controls, or board-level policy changes designed to prevent similar misconduct.

Investors considering a shareholder action must generally show they owned stock during the period of alleged misconduct and continue to hold it. Delaware law also requires that plaintiffs either demand that the board take action or show that such a demand would be futile due to conflicts or lack of independence.

How Shareholders Can Take Action

Securities investigations are time-sensitive. If you have held Hertz Global Holdings (NASDAQ: HTZ) shares since at least April 27, 2023, you may be able to seek corporate reforms, the return of funds back to the Company, and a court-approved incentive award for you, all at absolutely no cost.

Please complete the form below to join the investigation.