Holley $12.75 Million Securities Class Action Settlement

Investors who purchased or otherwise acquired Holley Inc. common stock or warrants between July 21, 2021, and Feb. 6, 2023, may be eligible to claim a cash payment from a class action settlement.

Holley Inc. and its insurers agreed to pay $12.75 million to settle a securities class action lawsuit alleging Holley and certain executives made false or misleading statements about the company's business, operations and growth prospects. The lawsuit claimed those statements misrepresented Holley's relationships with reseller customers, its pricing, its direct-to-consumer business and its mergers and acquisitions activity, artificially inflating the price of Holley securities.

Who can file a claim?

The settlement class includes all persons and entities who purchased or otherwise acquired Holley Inc. securities between July 21, 2021, and Feb. 6, 2023, inclusive, and were allegedly damaged as a result.

Additional details

• Both individuals and entities can be class members.
• The actual beneficial purchaser or a legal representative must submit the claim.
• Joint purchasers must each sign the claim form.
• Executors, administrators, guardians, agents, conservators and trustees may submit claims on behalf of others and must provide proof of authority.
• Each separate legal entity must submit its own claim form covering all of that entity's accounts.
• Only publicly traded Holley common stock and Holley warrants are eligible under the settlement.

How much can class members get?

The total settlement fund is $12,750,000. The amount each class member receives depends on several factors:

• The number of valid claims submitted
• The number and type of Holley securities purchased or acquired during the class period
• The timing of each purchase and sale
• The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation, which assigns a recognized loss to each Holley security bought or acquired during the class period:

• The estimated average distribution is about $0.16 per share of Holley common stock before deductions. After estimated deductions of about $0.04 per share for court-awarded attorneys' fees and expenses, the estimated average recovery is about $0.12 per share before notice and administration expenses.
• Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
• Artificial inflation is the estimated amount by which the alleged misstatements inflated the price of a Holley security on a given date.
• The recognized loss for Holley common stock and Holley warrants follows the same four rules, keyed to when the class member sold:
• For securities sold before July 29, 2022, the recognized loss is $0.
• For securities sold between July 29, 2022, and Feb. 7, 2023, the recognized loss is the lesser of the drop in artificial inflation between the purchase date and the sale date and the purchase price minus the sale price.
• For securities held at the end of Feb. 7, 2023, and sold on or before May 5, 2023, the recognized loss is the least of the artificial inflation at purchase, the purchase price minus the sale price and the purchase price minus the average closing price through the sale date, listed in Table B for common stock and Table D for warrants (pages 14-15 of the class notice).
• For securities held at the end of May 5, 2023, or sold later, the recognized loss is the lesser of the artificial inflation at purchase and the purchase price minus the average closing price during the 90-day look-back period, which is $2.36 for common stock and $0.32 for warrants.

• Artificial inflation in Holley common stock is $8.18 per share from July 21, 2021, through July 28, 2022; $3.18 from July 29 through July 31, 2022; $1.83 from Aug. 1 through Nov. 15, 2022; $1.27 from Nov. 16, 2022, through Feb. 6, 2023; and $0.20 on Feb. 7, 2023.
• Artificial inflation in Holley warrants is $2.42 per warrant from July 21, 2021, through July 28, 2022; $1.25 from July 29 through July 31, 2022; $0.61 from Aug. 1 through Nov. 15, 2022; $0.30 from Nov. 16, 2022, through Feb. 6, 2023; and $0.07 on Feb. 7, 2023.
• The settlement administrator will match sales against purchases on a first-in, first-out basis.
• Class members qualify for a distribution only if they had an overall net loss on their Holley securities transactions during the class period. If that market loss is smaller than the total recognized claim, the settlement administrator will limit the claim to the market loss.
• Payments on warrant claims are capped at 5% of the net settlement fund. If recognized losses on warrants exceed that cap, the settlement administrator will reduce warrant claims proportionally.
• The settlement administrator will set any recognized loss that calculates to a negative number to $0.
• Class members whose payment would be less than $10 will not receive a payout.

How to claim a Holley securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Nov. 19, 2026.

Settlement administrator's mailing address: Holley Securities Settlement, Claims Administrator, c/o Verita Global, P.O. Box 301170, Los Angeles, CA 90030-1170

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or their full taxpayer identification number. They must also provide holding and transaction information for Holley common stock and Holley warrants, including:

• Number of shares and warrants held at the close of trading on July 20, 2021
• Trade dates for purchases and sales between July 21, 2021, and May 5, 2023
• Number of shares or warrants bought or sold
• Total purchase price and total sale price, excluding commissions, taxes and fees
• Number of shares and warrants held at the close of trading on Feb. 6, 2023, and on May 5, 2023

Class members must also provide documentation to support their transactions in Holley securities. Acceptable proof includes:

• Broker confirmation slips
• Broker statements
• Other documents that adequately evidence transactions in Holley securities

Payout options

• Physical check
• Electronic payment

$12.75 million settlement fund

The $12,750,000 settlement fund includes:

• Notice and administration expenses: Amount not specified
• Attorneys' fees: Up to $3,187,500
• Attorneys' expenses: Up to $300,000
• Service award to lead plaintiff: Up to $10,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: Oct. 19, 2026
• Fairness hearing: Nov. 9, 2026
• Deadline to file a claim: Nov. 19, 2026

When is the Holley securities class action settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court grants final approval of the settlement and resolves any appeals.

Why did this class action settlement happen?

The class action lawsuit alleged Holley and certain executives made false or misleading statements about the company's business, operations and growth prospects, including its reseller relationships, pricing, direct-to-consumer business and acquisitions. The plaintiff claimed those statements artificially inflated the prices of Holley securities and caused investor losses when corrective information reached the market.

Defendants denied all allegations of wrongdoing, liability and damages but agreed to settle to avoid the costs, burdens and uncertainty of continued litigation.