The litigation focuses on the period between May 7 and June 23, 2026, when Hertz purportedly assured shareholders that depreciation risks were isolated and manageable under its "Back-to-Basics" fleet strategy. Plaintiffs claim that management failed to disclose that recurring market softness was actively undermining the company’s residual vehicle values and overall earnings capacity.

Following these representations, Hertz announced a $300 million exchangeable notes offering alongside a share-lending program. The company simultaneously lowered its second-quarter Adjusted Corporate EBITDA guidance to a range of $50 million to $80 million, triggering a significant sell-off. Joseph E. Levi, lead counsel for the plaintiffs, argues that shareholders were not provided a transparent picture of the risks inherent in the company’s reliance on vehicle resale values. The United States District Court for the Middle District of Florida has set a September 22, 2026, deadline for investors to apply for lead plaintiff status.