NEW YORK, 01 July 10, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors in Generac Holdings Inc. (“Generac” or the “Company”) (NYSE: GNRC). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529 ext. 7980.
The investigation focuses on whether Generac and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.
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Generac said its recent acquisitions (including its 80% stake in Pramac and the acquisition of Off Grid Energy) support the company’s “Powering A Smarter World” strategic plan and touted the role played by the partnership of High-profile strategic distribution of Generac with Sunnova. On June 22, 2022, Spruce Point Capital Management (“Spruce Point”) released an investment report alleging that Generac is struggling “to remove key business challenges, while turning to a wave of highly speculative and non proven in clean energy products and services”. Among other things, the Spruce Point report: (1) accused Generac of engaging in a pattern of misreporting acquisition revenue contribution between 2019 and 2021; (2) questioned Pramac’s inflated claims, calling them a “trademark of channel stuffing”; (3) observed that Generac’s press release announcing the acquisition of Off Grid Energy obscured the fact that its 80% Pramac business was the ultimate acquirer and found “evidence to suggest a fictitious revenue transaction at Off-Grid Energy”; and (4) believed that Generac’s distribution partnership with Sunnova may have been structured to allow Generac to round-trip cash flow.
On this news, Generac’s stock price fell $7.41 per share, or 3.37%, to close at $212.57 per share on June 22, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. See www.pomlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980