Hertz launch legal action

Car Hire company Hertz are taking legal action against Audit Integrity Inc for defamation after they released a report naming Hertz in the top 20 companies who were likely to declare bankruptcy in the next 12 months. The complaint was filed at the Superior Court in New Jersey against Audit Integrity, an independent research organisation which evaluates a range of businesses providing quarterly accounting and governance reports.

The press release in question was issued in September. It is alleged that the information stated that Hertz had “potential for fraudulent reporting of financial statements.” The CEO of Audit Integrity, Jack Zwingli, added fuel to the fire by appearing on TV network CNBC to promote his companies new findings. He is accused of saying that Hertz “lacks integrity and lies to shareholders.”

Car hire firm Hertz hit back at the remarks saying the accusations are completely without substance. Instead of showing signs of floundering, Hertz shares have actually risen at the New York Stock Exchange in recent days.

Hertz are angry that Audit Integrity issued the press release “knowing how defamatory and disruptive such charges can be to a publically traded company.” Hertz added that they have substantial assets in the form of their fleets of hire cars and these would provide sufficient funds should they find themselves in financial difficulties.

The car hire firm is calling for a retraction of the press release and is seeking damages for defamation and trade libel.