Generac Holdings Inc.

Investigation
08/20/2021

Initial Lawsuit
08/20/2021

Lawsuit Progression
10/19/2021

Investigation

Continous Holding
February 23, 2021 to July 29, 2021
Proposed Claim
Securities Violation

Investigation regarding Generac’s statements about the safety of its portable generators DR 6500 Watt and DR 8000 Watt and following recall.

Main Event

Generac Recalls Portable Generators

07/29/2021

U.S. Agency

The U.S. Consumer Product Safety Commission (CPSC) announces Generac’s recall of approximately 320,000 portable generators due to “finder amputation and crushing hazards.” The equipment was sold at major home improvement and hardware stores between June 2013 and June 2021.

“An unlocked handle can pinch consumers’ fingers against the generator frame when the generator is moved, posing finger amputation and crushing hazards . . . Generac has received eight reports of injuries, seven resulting in finger amputations and one in finger crushing.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$419.3	$431.04	$-11.74	-2.72%

See more on Factual Timeline

Initial Lawsuit

Plaintiff brings this securities class action on behalf of persons or entities who purchased or otherwise acquired publicly traded Generac securities between February 23, 2021 and July 29, 2021, inclusive.

Filing Date
08/20/2021
Class Period
02/23/2021 to 07/29/2021
Transgression
Securities Violation
Filing Firms
The Rosen Law Firm, P.A.
Case Title
Khami v. Generac Holdings Inc. et al
Docket Number
2:21-cv-01343
Court
Wisconsin Eastern District Court
Free File
Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(1) Generac’s portable generators posed an unreasonable risk of injury to users and the public;
(2) as a result, at least seven finger amputations and one crushed finger had been reported to the Company;
(3) as a result, Generac would face increased regulatory scrutiny;
(4) the Company would end sales in its Generac® and DR® 6500 Watt and 8000 Watt portable generators in the United States and Canada in June 2021;
(5) the Company would recall its Generac® and DR® 6500 Watt and 8000 Watt portable generators in the United States and Canada;
(6) the end of sales and the recall would occur before the Company’s noted hurricane and wildfire seasons and following the Texas outage—periods the Company has touted for sales; and
(7) as a result, Defendants’ public statements and statements to journalists were materially false and/or misleading at all relevant times.