Generac Holdings Inc. (GNRC)

Investigation 

Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Generac Holdings Inc. ("Generac" or "the Company") (NYSE: GNRC). Investors who purchased Generac securities are encouraged to obtain additional information and assist the investigation.

 

The investigation concerns whether Generac and certain of its officers and/or directors have violated federal securities laws.


Generac has asserted that its recent acquisitions (including its 80% interest in Pramac and acquisition of Off Grid Energy) support the Company’s “Powering A Smarter World” strategic plan and has touted the role played by Generac’s much-hyped strategic distribution partnership with Sunnova.  On June 22, 2022, Spruce Point Capital Management (“Spruce Point”) 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, the Spruce Point report: (1) accused Generac of engaging in a pattern of misreporting acquisition revenue contribution between 2019 and 2021; (2) questioned Pramac’s ballooning receivables, calling it “a hallmark of channel stuffing”; (3) observed that 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) opined that Generac’s distribution partnership with Sunnova may have been structured to enable Generac to round-trip cash flows.  On this news, Generac’s stock price fell $7.41 per share, or 3.37%, to close at $212.57 per share on June 22, 2022.

 

If you are aware of any facts relating to this investigation or purchased Generac shares you can assist this investigation. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484. 

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique.  Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients.  In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.