Holley Inc. is a designer, marketer, and manufacturer of high-performance automotive aftermarket products serving car and truck enthusiasts.

On July 16, 2021, Empower LTD completed a business combination with Holley Intermediate Holdings, Inc., a privately held company (the “Business Combination”). As a result of the Business Combination, among other things, the combined company became named “Holley Inc.” and beginning on July 19, 2021, its common stock traded on the NYSE. Empower previously operated as a blank check company, also referred to as a special purpose acquisition company.

A recently filed securities fraud class action complaint alleges that Holley Inc. (NYSE: HLLY) f/k/a Empower Ltd. (NYSE: EMPW), through certain of its officers and directors, made false and/or misleading statements and/or failed to disclose that: (i) as a result of Holley’s extensive focus on its direct-to-consumer (“DTC”) channel, Holley’s critically important relationships with its resellers and distributors, whose business made up the vast majority of Holley’s revenue, were suffering significant damage; (ii) Holley used discounting and other similar efforts to grow its DTC channel, which undermined the pricing discipline Holley historically had with its resellers and distributors, and further damaged Holley’s relationship with its resellers and distributors; (iii) as a result of Holley’s strained relationships with its resellers and distributors, those resellers and distributors were decreasing their purchases of Holley products, returning products already purchased at significant levels that were far above historical norms, and increasing their purchases of competitors’ products; (iv) Holley’s growing DTC channel could not offset the negative financial impact of Holley’s increasingly strained relationships with its resellers and distributors and, as a result, Holley’s critical relationship with resellers and distributors was deteriorating; (v) Holley had failed to successfully integrate and capture synergies from its numerous acquisitions, which left Holley with inefficient operations, excess costs, and inventory management problems; and (vi) Holly benefited from COVID-related stimulus money that temporarily boosted its sales and performance, and despite this unsustainable, temporary boost, defendants misled investors to believe the growth was sustainable and the result of persistent demand, and supportive of positive financial guidance.

Current Holley shareholders who have held Holley shares since on or prior to July 21, 2021, or via holdings of Empower Ltd., can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to them whatsoever.

If you would like to learn more about this matter at no cost to you, please us at jgrabar@grabarlaw.com or call 267-507-6085.