Robbins LLP reminds investors that a shareholder filed a class action lawsuit on behalf of persons who purchased or otherwise acquired Generac Holdings, Inc. (NYSE: GNRC) stock between May 3, 2023 and August 3, 2023. Generac designs, engineers and markets standby power generators. It produces generators for both industry and for home consumers. It also produces other products for industrial and personal use, such as heaters and pressure washers.
What is this Case About: Generac Holdings, Inc. (GNRC) Made False and Misleading Statements Regarding its Business Prospects
According to the complaint, during the class period, defendants underplayed the impact of inflation on consumer generator sales, going so far as to say that it is “trumped” by other factors. Consequently, defendants provided investors with a skewed outlook for 2023, asserting that the Company would recover sales by the second half of 2023, in spite of macroeconomic factors, which disfavored consumer spending.
On August 2, 2023, the Company held its Q2 2023 earnings call. During that call, defendant Jagfeld revealed lackluster quarterly results: “[y]ear-over-year, overall net sales decreased 23% to $1 billion and quarter sales declined 26% during the quarter. Residential sales products decreased 44% …” Defendant Jagfeld also indicated the diminished consumer spending would affect Generac’s sales for the remainder of 2023. Defendant Ragen further explained the residential sector is “not going to improve as much as we thought relative to 3 months ago because of the softer consumer that we’re seeing.” On this news, Generac shares plummeted by 27.8%, to close at $110.77 on August 3, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Genera Holdings, Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by January 26, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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