Pomerantz Appointed Lead Counsel in Generac Holdings Securities Litigation

On December 15, 2021, U.S. District Judge Lynn Adelman of the Eastern District of Wisconsin appointed Pomerantz LLP as Lead Counsel on behalf of Carey Don Procter, the Lead Plaintiffs in In re Generac Holdings Inc. Sec. Litig., 21-cv-1342 (E.D. Wis.), a securities action brought on behalf of a class of defrauded investors concerning allegations that Generac Holdings Inc. (“Generac” or the “Company”) had made false and misleading statements regarding product safety, product recalls, and the impact that these issues would have on revenue.

Generac designs and manufactures a wide range of energy technology solutions, which provides power generation equipment and other power products, including portable generators, to residential, light commercial and industrial customers.

Allegations against Generac include that: (i) the Company failed to disclose that its portable generators posed an unreasonable risk of injury to users and had resulted in seven finger amputations and one crushed finger; (ii) as a result, Generac would face increased regulatory scrutiny; (iii) the Company would recall and end sales of its Generac® and DR® 6500 Watt and 8000 Watt portable generators in the U.S. and Canada in June 2021; and (iv) the end of sales and the recall would occur before the Generac’s lucrative hurricane and wildfire seasons and following the Texas outage-periods the Company has touted for sales.

On July 29, 2021, the U.S. Consumer Product Safety Commission (CPSC), Health Canada, and the Organisation for Economic Co-operation and Development (OECD) announced the Generac portable generator recall, revealing that the Company had received reports of seven finger amputations and one finger crushing.

On this news, Generac’s share price fell $31.04 per share, or 7.2%, to close at $400 per share on August 2, 2021.