RADNOR, Pa., Aug. 26, 2021 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed in the United States District Court for the Central District of California against Generac Holdings Inc. (NYSE: GNRC) (“Generac”) on behalf of those who purchased or acquired Generac securities between February 23, 2021 and July 29, 2021, inclusive (the “Class Period”).
The Class Period commences on February 23, 2021, when 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 complaint, 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, Generac’s stock price fell $31.04 per share, or 7%, from its July 28, 2021 closing price over the next three trading days to close at $400.00 per share on August 2, 2021.
The complaint alleges that, 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.
Generac investors may, no later than October 19, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a 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. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.