NEW YORK, NY / ACCESSWIRE / August 14, 2022 / Pomerantz LLP is investigating claims on behalf of investors of Generac Holdings Inc. ('Generac' or the 'Company') (NYSE: GNRC). Such investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, ext. 7980.
The investigation concerns whether Generac and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
Generac has asserted that its recent acquisitions (including its 80% interest in Pramac and acquisition of Off Grid Energy) support the Company's 'Powering A Smarter World' strategic plan and has touted the role played by Generac's much-hyped strategic distribution partnership with Sunnova. On June 22, 2022, Spruce Point Capital Management ('Spruce Point') published an investment report alleging that Generac is struggling 'to suppress core business challenges, while pivoting towards a highly speculative and unproven acquisition spree 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 ballooning receivables, calling it 'a hallmark of channel stuffing' (3) observed that Generac's press release announcing the Off Grid Energy acquisition obscured the fact that its 80% Pramac business was the end acquiror and found 'evidence to suggest a sham revenue transaction at Off Grid Energy' and (4) opined that Generac's distribution partnership with Sunnova may have been structured to enable Generac to round-trip cash flows.
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 acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. 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 in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
SOURCE: Pomerantz LLP
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