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GNRC.US
id: 832
Generac (GNRC) Missed Guidance Case
E.D. Wisconsin
Court2:24-cv-240
Case number05/30/2023
Class period Start08/03/2023
Class period End01/22/2024
Lead Plaintiff motion deadline- In August 2023, Generac revised downward 2023 guidance.
- $GNRC fell 24%, losing $2.3B of its shareholder value.
- First claim already filed in Wisconsin by one of the affected stockholders.
On August 2, 2023, Generac (GNRC) announced revised downward guidance for 2023 due to “weakness in residential products.” The Company blamed the downturn on a “softer consumer spending environment” which led to weaker-than-expected sales of residential units.
On this news, $GNRC fell by over 24% and lost $2.3 billion of its market capitalization, seriously damaging investors.
Earlier, on May 3, 2023, during the earnings call, President & CEO Aaron P. Jagfeld gave investors an optimistic outlook.
- He stated an expectation that “gross sales from residential energy technology products and services to deliver between $300 million and $350 million for the full year 2023." Jagfeld further indicated an expectation for improvement in Q2 2023.
- York A. Ragen, Generac’s CFO & CAO, stated, “Demand for our home standby products tends to be driven more by power outages than overall macroeconomic conditions,” giving investors the impression that Generac’s sales should remain steady in spite of worsening economic conditions in the U.S. and abroad. Jagfeld later reiterated that macroeconomic factors are a secondary factor for the Company’s sales and growth, stating, “I think the biggest thing over my time here, almost 3 decades at the company, is that power outages trump the economy every day of the week.”
Considering all representations, investors have reasons to suspect Generac of misleading about true business prospects. The initial claim has been filed in Illinois by one of the affected stockholders.
Case Status
Motion to dismiss
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
08/02/2023
Filing date
11/21/2023
Lead Plaintiff Deadline
01/22/2024
Judge
William M Conley