NEW YORK, Nov. 19, 2023 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Holley Inc. f/k/a Empower Ltd. (“Holley” or the “Company”) (NYSE: HLLY). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Holley and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On July 28, 2022, Holley announced its preliminary results for its second quarter ended July 3, 2022 (“2Q22”). Not only did the preliminary results badly miss expectations, but the Company also slashed its full year 2022 outlook. The Company stated that sales for 2Q22 dropped 7% to $179.4 million and that adjusted profits plunged by 31% to $37.2 million. Holley revealed its 2022 sales would drop approximately 8.4% from its previous guidance to a range of $700 million to $725 million, and that adjusted earnings were being slashed 26% from prior guidance to a range of $135 million to $145 million.
On this news, Holley’s stock price fell $4.68 per share, or 37%, to close at $7.99 per share on July 29, 2022. Holley’s stock price continued to fall an additional $1.32 per share, or 16.5%, to close at $6.67 per share the next trading day on August 1, 2022.
On August 11, 2022, Holley announced its Chief Financial Officer (“CFO”), Dominic Bardos, had resigned effective September 30, 2022 to “pursue another opportunity and for personal reasons.” Holley announced that Stephen Trussell, the Company’s then-Vice President of Finance, would serve as interim CFO while the Company searched for a permanent replacement.
On November 14, 2022, Holley announced disappointing financial results for the third quarter ended October 2, 2022. The Company reported a 3% decline in net sales, a 25.8% decrease in gross profit, and a more than 50% decline in adjusted EBITDA compared to the third quarter of 2021. Holley also once again cut its forecasts for 2022, lowering net sales to a range of $695 million to $710 million and dropping adjusted earnings to a range of $118 million to $124 million, well below the 2022 numbers provided on July 28, 2022.
On this news, Holley’s stock price fell $0.22 per share, or 6.85%, to close at $2.99 per share on November 14, 2022.
Then, on February 6, 2023, Holley announced that Chief Executive Officer (“CEO”) and President Tom Tomlinson was retiring, effective immediately, and also resigning from the Company’s Board of Directors (the “Board”), and that the Board appointed Director Michelle Gloeckler as Interim President and CEO while the Company conducted a “comprehensive search process to identify a permanent CEO.” Holley stated its search would be conducted with the help of Heidrick & Struggles, a company “retained by the Board in September 2022 for a comprehensive review of succession planning.”
Also on February 6, 2023, Holley announced its preliminary fourth quarter 2022 (“4Q22”) and full year 2022 financial results, revealing 4Q22 sales that fell short of market estimates as well as adjusted EBITDA that new Holley CFO Jesse Weaver called “disappointing.”
On this news, Holley’s stock price fell $1.06 per share, or 31%, to close at $2.36 per share on February 7, 2023. Holley’s stock price continued to fall an additional $0.23 per share, or 9.75%, to close at $2.13 per share on February 8, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
