RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Generac Holdings Inc. ("Generac" or the "Company") (NYSE: GNRC) securities during the period from April 29, 2021 through November 1, 2022, inclusive (the “Class Period”).
Generac shareholders may, no later than January 30, 2023, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Generac and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
According to the complaint, defendants concealed from investors that Generac’s component part – “SnapRS” – was defective. Consumers and business partners informed the Company of the defect, but defendants continued to tout the success and reliability of its solar energy products.
On August 1, 2022, a Generac channel partner – Pink Energy – filed a lawsuit against Generac, revealing that the Company’s “defective” SnapRS components caused millions of dollars of damage, giving rise to liability that threatened Pink Energy’s solvency. The disclosures in the Pink Energy complaint caused the price of Generac shares to decline by $3.31 per share. The liability created by defective SnapRS components ultimately forced Pink Energy to declare bankruptcy on October 7, 2022.
On October 19, 2022, Generac revealed that it had taken “pre-tax charges totaling approximately $55 million, including approximately $37 million of clean energy product warranty-related matter and approximately $18 million of bad debt expense related to a clean energy product customer that has filed for bankruptcy.” On this news, the price of Generac shares declined by $37.44 per share, or 25%.
Finally, on November 2, 2022, Generac released its earnings results for the third quarter of 2022, and lowered sales guidance on its solar energy business for the remainder of the year by approximately 40%. The lowered guidance was attributed to “the loss of a major customer during the quarter, along with the specific warranty-related issue”—i.e., the defective SnapRS component and the Pink Energy bankruptcy that resulted directly from that defect. Analysts expressed shock upon learning how dependent Generac’s clean energy business was on Pink Energy, with several analysts noting that investors had not been told of the significant concentration of that business with a single partner. As a result of these disclosures, the price of Generac shares declined by $8.99 per share, or 8%.
If you are a member of the class, you may, no later than January 30, 2023, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.