Grabar Law Office is investigating claims on behalf of shareholders of Hertz Global Holdings, Inc. (NASDAQ: HTZ). The investigation concerns whether certain officers and directors breached the fiduciary duties they owed to the company.

Hertz Global Holdings, Inc. (NASDAQ: HTZ) is a vehicle rental company that offers both ICE vehicle and EV rental services from Company-operated, licensee, and franchisee locations across various countries. The Company also sells vehicles and value-added services.

Key allegations in an underlying securities fraud class action have now survived a motion to dismiss. That complaint alleges that, Hertz Global Holdings, Inc. (NASDAQ: HTZ), through certain of its officers, made materially false and/or misleading statements and/or failed to disclose that: (i) Hertz had downplayed the financial impact of vehicle depreciation, and/or overstated its ability to track and manage vehicle depreciation; (ii) demand for Hertz's EVs was not as strong as Defendants had led investors to believe; (iii) Hertz had too many vehicles, particularly EVs, in its fleet to remain profitable; (iv) as a result of all the foregoing, Hertz was likely to incur significant losses on the disposition of both its ICE vehicles and EVs; (v) all the foregoing was likely to, and did, have a significant negative impact on Hertz's financial results; and (vi) as a result, the Company's public statements were materially false and misleading at all relevant times.

On October 10, 2025, U.S. District Judge Kyle C. Dudek refused to dismiss claims stemming from two alleged misstatements regarding the company's actual trends in customer demand for electric vehicles.

One of the statements was made in January 2023 on a business news television show by the company's then-CEO Stephen M. Scherr. When asked during that interview about electric vehicle demand, Scherr said, "EV rental demand is very strong and strong across all aspects of our business," and when the interview was put on the show's website, it was captioned "Hertz CEO Stephen Scherr: EV rental demand is strong across all aspects of our business. “In his suit, Hertz investor . . . claimed that statement was false because at the time, Hertz's "overall EV rental demand had been declining since the second quarter of 2022 and had stayed depressed as customers did not want to rent EVs due to a lack of sufficient charging stations and/or because they either did not know how to drive EVs or were dissatisfied with the driving experience.” Judge Dudek found that the investor adequately pled that the statement was false and couldn't be described as inactionable puffery. “To be sure, statements using descriptors like 'strong' are often inactionable," the judge said. "But they can create liability when tied to more concrete facts," such as the company's earlier announcement that it was betting big on electric vehicles.

Judge Dudek also left in place claims over Scherr's April 2023 statement on an earnings call that "We are forecasting nearly 2 million [electric vehicle] rentals in 2023, approximately five [times] the number of the prior year," noting that Stephens said that at the time that statement was made, Hertz had seen lagging demand for electric vehicles. “It doesn't matter that defendants disclosed [electric vehicle] demand as a risk" elsewhere, Judge Dudek said. "According to Stephens'evidence, that risk had already materialized. The cautionary language accompanying defendants' forecast was thus meaningless."

WHAT YOU CAN DO NOW: If you purchased Hertz Global Holdings, Inc. (NASDAQ: HTZ), shares prior to January 6, 2023 and still hold shares today, you are encouraged to contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.  You can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever.