The legal action, brought by the firm Levi & Korsinsky, centers on the period leading up to a sharp 40% decline in Hertz's share price on June 24, 2026. According to the complaint, management repeatedly assured stakeholders that the company maintained sufficient liquidity and that challenges within the used-car market were manageable. These claims allegedly lacked a reasonable basis, as the company’s financial flexibility was deteriorating more rapidly than suggested.

On June 24, the company announced a $300 million offering of exchangeable senior notes alongside a share-lending program, revealing that used-car market weakness was significantly pressuring fleet economics. The lawsuit contends that these revelations contradicted previous "Back-to-Basics" strategy updates, which had touted progress toward depreciation targets. Investors seeking to serve as lead plaintiff in the case must file their applications by September 22, 2026.