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Case Status:    DISMISSED    
On or around 04/27/2017 (Court's order of dismissal)

Filing Date: November 20, 2013

According to the law firm press release, Hertz, based in Park Ridge, New Jersey, is one of the nation’s largest automobile and equipment rental companies.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s financial performance and future prospects, failing to disclose that: (a) Hertz was losing sales in the all-important airport market, which offers higher rental prices and margins than off-airport, longer-term “replacement car” locations; (b) Hertz had significant undisclosed exposure to the insolvency of Advantage Rent A Car (“Advantage”) subsidiary Simply Wheelz LLC (“Simply Wheelz”), a wholly-owned subsidiary of Hertz that operated its Advantage business; (c) Hertz and Advantage were engaged in a disagreement over the value of the Advantage fleet assets; (d) Hertz was carrying the value of its fleet transferred to Advantage and its subsidiary Simply Wheelz on its books at an artificially inflated level; and (e) as a result of the foregoing, Hertz lacked a reasonable basis for the positive statements about its business, earnings and prospects during the Class Period.

After reporting quarter after quarter of purportedly “record” financial results during the Class Period, which defendants claimed supported the Company’s strong fiscal 2013 guidance, suddenly, on September 26, 2013, Hertz issued a press release entitled “Hertz Revises Full Year 2013 Guidance.” The release made substantial revisions to the guidance the Company had consistently maintained it was on track to reach since February 2013. On this news, the price of Hertz stock fell by more than $4 per share, or 16%, to close at $21.63 per share.

Then, on November 4, 2013, after the close of trading, Hertz issued a press release announcing its third quarter 2013 financial results for the quarter ended September 30, 2013. The release disclosed that on a GAAP basis, Hertz’s net income fell to $214.7 million, or $0.47 per share, from $242.9 million, or $0.55 per share, in the third quarter of 2012, and disclosed for the first time Hertz’s exposure to Simply Wheelz’s insolvency. The next morning, Simply Wheelz announced that it was filing for protection under the federal bankruptcy statutes. On this news, the price of Hertz stock dropped further, falling $2.50 per share, or 10.50%.

On February 20, 2014, there was an Order granting Motion to Appoint Lead Plaintiff, and granting Motion to consolidate Cases.

On May 7, 2014, there was an amended complaint filed by the Plaintiffs.

On June 23, 2014, the Defendants filed a Motion to Dismiss the Plaintiffs' complaint.

On July 22, 2015, the Court issued an Order granting Defendants' motion to dismiss. Plaintiffs were given leave to amend their complaint. Plaintiffs filed an amended complaint on August 21.

Plaintiffs filed a fourth consolidated and amended complaint on March 1, 2016.

On April 27, 2017, the Court granted Defendant's Motions to Dismiss with prejudice and terminated this case.

COMPANY INFORMATION:

Sector: Transportation
Industry: Misc. Transportation
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: HTZ
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. New Jersey
DOCKET #: 13-CV-07050
JUDGE: Hon. Stanley R. Chesler
DATE FILED: 11/20/2013
CLASS PERIOD START: 02/25/2013
CLASS PERIOD END: 11/04/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abraham, Fruchter & Twersky LLP
    One Penn Plaza, Suite 2805, Abraham, Fruchter & Twersky LLP, NY 10119
    (212) 279-5050 (212) 279-3655 ·
  2. Cohn, Lifland, Pearlman, Herrmann & Knopf
    Park 80 Plaza West-One, Cohn, Lifland, Pearlman, Herrmann & Knopf, NJ 7663
    201845.9600 · info@njlawfirm.com
  3. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date
COURT: D. New Jersey
DOCKET #: 13-CV-07050
JUDGE: Hon. Stanley R. Chesler
DATE FILED: 03/01/2016
CLASS PERIOD START: 02/14/2013
CLASS PERIOD END: 07/16/2015
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohn, Lifland, Pearlman, Herrmann & Knopf
    Park 80 Plaza West-One, Cohn, Lifland, Pearlman, Herrmann & Knopf, NJ 7663
    201845.9600 · info@njlawfirm.com
  2. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
  3. Sachs Waldman P.C.
    1423 East Twelve Mile Road, Sachs Waldman P.C., MI 48071
    248.658.0800 313.965.4315 ·
No Document Title Filing Date