SAN FRANCISCO, Aug. 17, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges Generac Holdings Inc. (NYSE: GNRC) investors who suffered significant losses to submit your losses now.
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Generac Holdings Inc. (NYSE: GNRC) Investigation:
The investigation focuses on Generac’s claims that its acquisitions (including its 80% interest in Pramac and acquisition of Off Grid Energy) support the company’s “Powering A Smarter World” strategic plan and on the role played by Generac’s heavily touted strategic distribution partnership with Sunnova.
The company’s claims came into question on June 22, 2022, when analyst Spruce Point Capital Management 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, Spruce Point: (1) accused Generac of engaging in a pattern of misreporting acquisition revenue contribution between 2019 – 2021; (2) questioned Pramac’s ballooning receivables, calling it “a hallmark of channel stuffing”; (3) observed 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) highlighted Spruce Point’s concerns that Generac’s distribution partnership with Sunnova may have been structured to enable Generac to round-trip cash flows.
In response to Spruce Point’s report, the price of Generac shares sharply declined during intraday trading on June 22, 2022.
“We’re focused on investors’ losses and whether Generac may have improperly recognized unearned revenues,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Generac and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Generac should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email GNRC@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
