Generac Holdings Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Generac Holdings Inc. (“Generac” or the “Company”) (NYSE: GNRC) securities from February 23, 2021 through July 29, 2021, inclusive (the “Class Period”). Investors have until October 19, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Generac describes itself as a leading global designer and manufacturer of a wide range of energy technology solutions, which provide power generation equipment and other power products serving the residential, light commercial and industrial markets.
On February 23, 2021, Generac filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K for the period ended December 31, 2021 (the “Annual Report”). According to the lawsuit, the Annual Report touted the importance of Generac’s residential generators for its business and that its generators “have many advantages over our competitors with strengths in our engineering, sourcing and operations capabilities as well as a global distribution network that we believe can be leveraged further for continued market share gains.” The Annual Report also touted the safety of its generators and that “[r]esearch and development (R&D) is a core competency and includes a staff of over 500 engineers.” The Annual Report further stated that in light of recent power disruptions, there was an increased awareness and demand for portable and home standby generators which contributed to strong revenue growth.
The truth emerged on July 29, 2021, when the United States Consumer Product Safety Commission, Health Canada, and the Organisation for Economic Co-operation and Development announced the Generac portable generator recall, revealing that the Company had received reports of seven finger amputations and one finger crushing. On this news, the Company’s share price declined by $11.74 per share, or approximately 2.7%, from $431.04 per share to close at $419.30 per share on July 29, 2021.
The lawsuit alleges throughout the Class Period, the Defendants made false and/or misleading statements and/or failed to disclose that: (1) Generac’s portable generators posed an unreasonable risk of injury to users and the public; (2) as a result, at least seven finger amputations and one crushed finger had been reported to the Company; (3) as a result, Generac would face increased regulatory scrutiny; (4) Generac would end sales in its Generac® and DR® 6500 Watt and 8000 Watt portable generators in the United States and Canada in June 2021; (5) Generac would recall its Generac® and DR® 6500 Watt and 8000 Watt portable generators in the United States and Canada; (6) the end of sales and the recall would occur before Generac’s noted hurricane and wildfire seasons and following the Texas outage-periods the Company has touted for sales; and (7) as a result, Defendants’ public statements and statements to journalists were materially false and/or misleading at all relevant times.
If you purchased or otherwise acquired Generac securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.