REPORT: Hertz files defamation suit against analyst who says company could go bankrupt
Founded in 1918 with a fleet of just twelve Ford Model Ts, Hertz Global Holdings Inc. has grown into the world's largest rental car company with nearly 8,000 offices worldwide. According to to Reuters, on Friday, the company filed a lawsuit against Audit Integrity Inc. and its chief executive, Jack Zwingli, after its analysts published a report earlier this month indicating Hertz would be among nearly two dozen large companies "most likely to declare bankruptcy" during the next year.
Understandably miffed, Hertz has submitted legal papers accusing Audit Integrity of defamation and being trade libel for publishing a false statement of fact. According to Hertz officials, the defendants had "no factual basis" for the report and said that the conclusions about its financial health were "baseless." The report was released on September 16 and Zwingli was interviewed about it on CNBC television that same day.
Not only is Hertz is seeking monetary and punitive damages in the lawsuit, but they are asking for an official retraction. Audit Integrity is holding its ground. "We firmly stand behind our methodology and findings, and will vigorously defend ourselves against this unwarranted litigation," countered Zwingli in a statement. Nevertheless, Hertz shares were up in today's market trading.
[Source: Reuters UK | Image: Tim Boyle/Getty]
Reader Comments (Page 1 of 1)
Clay Garland 5:41PM (9/29/2009)
With the stock market, statements like that have a nasty habit of becoming a self-fulfilling prophecy.
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letstakeawalk 9:29PM (9/29/2009)
That's very true. Some business media have been accused of making fortunes by declaring certain companies are going into bankruptcy, and then making huge $$$ by shorting the stocks. Similar accusations have been made concerning Jim Cramer and his thscreet website regarding the shorting of Sirius/XM stock.
http://seekingalpha.com/article/163848-negative-media-attacks-plague-sirius-xm-radio?source=yahoo
compy386 6:10PM (9/29/2009)
I'm pretty sure you have to prove malicious intent in these kinds of cases. If you could sue someone for baseless reporting TTAC would have been sued to the ground years ago...
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PCIV 6:14PM (9/29/2009)
They're suing so they have cash to keep going.
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PCIV 6:14PM (9/29/2009)
My opinion only, not fact.
meatbag 7:48PM (9/29/2009)
the truth hertz, dont it?
GMan 6:18PM (9/29/2009)
I didn't know about this report until now. So by making this report even MORE public than before, isn't Hertz working to ruin their reputation even more?
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letstakeawalk 9:33PM (9/29/2009)
No. Hertz is getting its side of the story out. An intelligent person would listen to both sides of the accusations, and base their decision on the facts. By doing it in court, Hertz is making it very clear how serious they are that the accusations are false, and if they prove that, they will be entitled to compensation.
jcar302 6:46PM (9/29/2009)
I hope they win, analyst's can seriously hurt a company's reputation.
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Ray 6:51PM (9/29/2009)
SO the question is, is there factual basis? If there proves to be, sorry Hertz, no matter what you say you're not going to get anything.
If Hertz wins will they buy some new Fiestas?
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keep the change 7:42PM (9/29/2009)
Man, that hertz.
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JORDAN 10:31AM (9/30/2009)
I could have told you this was coming when they started holding payments to vendors for 60, then 90 days, now they aren't cutting any checks to vendors, such as body shops, until the day after the previous quarter ends. They are doing this to make their numbers look better for the quarter and it's putting people out of business, and it bad business all the way around.
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blitzgt 9:34PM (9/29/2009)
They are indeed in some sort of trouble, I booked a car in Germany at the airport and when I went to go pick it up the folks at the desk informed me that Hertz will not rent any vehicles due to financial issues and that the office at the airport may be closing, this was in April of this year.
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Jakesnake1294 4:12AM (9/30/2009)
This is too bad. I really like Hertz.
My company is too cheap to pay for anything other than the bottom of the line subcompact rentals when they send me out of town.
The last 3 cars that Hertz gave me as a bottom level sub compact were; an Infiniti FX35, a Volvo C70, and a Mustang convertible. I never asked for an upgrade, the Hertz people offer it up like it's no big deal. The Mustang and the Volvo were virgin rides right off the delivery truck.
National car rental was almost a guarantee to get stuck in a Chrysler Sebring that smells like Chimpanzees made wild, crazy sex inside, and a bad suspension.
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sk 7:53AM (9/30/2009)
I believe it, the last view times I had to rent cars Hertz was always the most expensive option with over 20% more expensive then the next rental place. Looks like they try to make some money to save there butts.
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jbh1126 12:34PM (9/30/2009)
i did worked for hertz last summers over der in manhaton. I did tings like manager. No one make smart or the dollars. I leeaved when the sky went blue.
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