The litigation centers on statements Hertz made during its Q1 2026 earnings release on May 7. At that time, the company touted its strongest revenue growth in three years and assured shareholders that its liquidity and refinancing options would comfortably cover obligations for the next twelve months. However, the outlook shifted abruptly on June 24.

On that day, the company revealed a $300 million note offering and a concurrent share-lending plan involving 37 million shares. Simultaneously, management cited unexpected softness in the used car market for a downward revision of its second-quarter Adjusted Corporate EBITDA to a range of $50 million to $80 million. The market reaction was swift, with the stock closing at $3.00—a decline of more than 40%. By the following day, the offering was upsized to $350 million at a 6.75% coupon, while the borrowed shares were priced at $2.70. The law firm Wolf Haldenstein Adler Freeman & Herz LLP has set a September 22, 2026, deadline for investors to serve as lead plaintiffs in the case.