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GNRC.US
id: 478

Generac (GNRC) Defective Components Case.

E.D. Wisconsin
Court
2:22-cv-01436
Case number
29 Apr 2021
Class period Start
01 Nov 2022
Class period End
On November 2, 2022, Generac (GNRC) lowered sales guidance on its solar energy business by approximately 40%.

On a conference call with investors and analysts, Generac’s CEO, Jagdfeld, attributed the lowered guidance to “the loss of a major customer during the quarter, along with the specific warranty-related issue”—i.e., the defective SnapRS component and the Pink Energy bankruptcy that resulted directly from that defect.

Analysts expressed shock upon learning how Generac’s clean energy business was on Pink Energy, with several analysts noting that investors had not been told of the significant concentration of that business with a single partner.

  • Going back on October 19, 2022, in the wake of Pink Energy’s bankruptcy, Generac revealed that it had taken “pre-tax charges totaling approximately $55 million, including approximately $37 million of clean energy product warranty-related matter and approximately $18 million of bad debt expense related to a clean energy product customer that has filed for bankruptcy.”
  • On August 1, 2022, Pink Energy filed a lawsuit against Generac, revealing that the Company’s “defective” SnapRS components caused millions of dollars of damage, giving rise to liability that threatened Pink Energy’s solvency.
Taking all representations and facts into account, Investors have reasons to suspect that Generac and its senior executives concealed from investors a defective component at the core of Generac’s solar power products.
Case Status
Attorney Investigation
Alleged Offence
Misleading Statements
Failure to Disclose
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Shareholder
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02 November 2022
Filing date
01 December 2022
Judge
Hon. Brett H. Ludwig
Collecting participants…

Generac Holdings Inc

Generac Holdings Inc. designs, manufactures, and sells power generation equipment, energy storage systems, energy management devices and solutions, and other power products for the residential, lig...

    Ticker
    GNRC.US
    ISIN
    US3687361044
    CIK
    1474735
    Sector
    Industrials
    Industry
    Specialty Industrial Machinery
    Country
    USA
    Address
    S45 W29290 Highway 59, Waukesha, WI, United States, 53189