National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP recommends that Generac Holdings Inc. (“Generac” or the “Company”) investors who suffered losses from purchasing or otherwise acquiring Generac common stock (NYSE: GNRC) between April 29, 2021 and November 1, 2022 contact our attorneys immediately regarding pending securities fraud class action against Generac. The deadline to apply to be a lead plaintiff is January 30, 2023.
Class Period: April 29, 2021 – November 1, 2022
Lead Plaintiff Motion Deadline: January 30, 2023
Case information: lieffcabraser.com/securities/generac/
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The securities class action alleges that Generac and certain of its senior executives made false and misleading statements and failed to disclose material information concerning: (1) the safety and success of a component of the Company’s clean power products, “SnapRS,” (2) the number of channel partners Generac relied on to sell, install, and service those products, and (3) Generac’s warranty liability arising from the defective SnapRS products.
On August 1, 2022, Pink Energy, one of Generac’s channel partners, filed a lawsuit against Generac claiming that defective SnapRS components in Pink Energy products exposed the company to liabilities that could result in its bankruptcy. On this news, the price of Generac stock fell $3.31 per share, or 1.23%, to close at $264.99 per share on August 1, 2022.
On October 19, 2022, after Pink Energy declared bankruptcy, Generac reported pre-tax charges of $55 million for the third quarter of 2022, including $37 million apparently for warranty expenses related to liability for defective SnapRS components, and an $18 million charge for receivables owed to Generac from Pink Energy and other customers who purchased defective SnapRS components. On this news, the price of Generac stock fell $37.44 per share, or 25.34%, to close at $110.30 on October 19, 2022, on heavy trading volume.
On November 2, 2022, Generac lowered its sales guidance for its solar energy business for the fourth quarter of 2022 by approximately 40% due, in part, to the loss of a major customer (Pink Energy) and liabilities related to the defective SnapRS product and Pink Energy’s bankruptcy. On this news, the price of Generac stock fell $8.99 per share, or 7.84%, to close at $105.71 on November 2, 2022, on elevated trading volume.
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