The legal action, filed in the U.S. District Court for the Middle District of Florida, contends that Hertz misled shareholders regarding its financial health. While the company initially touted a "Back-to-Basics" strategy and sufficient liquidity, the complaint asserts these assurances collapsed on June 24, 2026. On that day, Hertz announced a $300 million senior secured note offering and a concurrent share-lending transaction, while simultaneously slashing its second-quarter EBITDA guidance.

According to the allegations brought by Levi & Korsinsky LLP, the company’s previous claims—specifically regarding fleet rotation and a year-end liquidity target exceeding $1.5 billion—failed to account for deteriorating market conditions. Plaintiffs argue that Hertz hid the impact of a softening used-car market, which pressured depreciation costs and eroded the company’s cash runway. The stock price, which closed above $5 on June 23, plummeted to $3.00 the following day, a decline the lawsuit characterizes as the market correcting for previously artificial price inflation.