Hertz Faces Securities Class Action Over Used-Car Market Misstatements

The legal action, filed in the United States District Court for the Middle District of Florida, follows a sharp decline in Hertz’s share price. After the company announced a $300 million exchangeable notes offering and slashed its second-quarter Adjusted Corporate EBITDA guidance to between $50 million and $80 million, the stock price plummeted by more than 40 percent. The complaint alleges that Hertz management characterized weakness in the used-car market as transitory and manageable, even as falling residual values began to undermine the company’s fleet economics.

According to the allegations, Hertz’s core "Back-to-Basics" turnaround plan relied on disciplined fleet rotation and controlled depreciation per unit—targets the company claimed were on track. Plaintiffs contend that these representations were materially incomplete, failing to disclose that persistent market softness was actively eroding near-term earnings. Law firm Levi & Korsinsky, representing the potential class, emphasizes that shareholders were not provided a transparent picture of these risks before the subsequent market correction. Investors seeking to serve as lead plaintiff must submit their applications by September 22, 2026.