INVESTIGATION ALERT: Berger Montague PC Investigates Generac Holdings Inc.'s Board of Directors For Breach of Fiduciary Duties (NYSE: GNRC)

[ACCESSWIRE]

PHILADELPHIA, PA / March 27, 2023 / Berger Montague advises shareholders of Generac Holdings Inc. ("Generac") (NYSE:GNRC) about an investigation into Generac's Board of Directors for potential breaches of fiduciary duties to Generac and its shareholders.

Shareholders of Generac may learn more about this investigation by contacting Berger Montague: Russell Paul at [email protected] or (215) 875-4601, or Andrew Abramowitz at [email protected] or (215) 875-3015, or visit: https://investigations.bergermontague.com/generac-holdings

Generac is a Wisconsin-based producer of residential generators and backup power systems. In recent years, Generac expanded its business to include solar-based clean energy systems. Generac's solar offering, called the PWRcell, is a battery-based system that stores and manages electricity generated from solar panels. A critical part of the PWRcell system is the SnapRS rapid shutdown - a device meant to shut off the flow of electricity from solar panels to the rest of the system. Generac sells its PWRcell systems, including the SnapRS component, primarily through independent residential dealers, known as channel partners. Those channel partners, in turn, sell or rent the product to the end consumer, providing installation and continued maintenance services for the PWRcell systems.

On August 1, 2022, the Company's single channel partner, Power Home Solar, LLC d/b/a Pink Energy ("Pink Energy"), sued Generac, alleging, among other things, that Generac had provided "defective" components. The Pink Energy Complaint criticized Generac's failure to recall the dangerous SnapRS unit in light of Pink Energy's urging that they do so-both for the sake of their business, and for the safety of their customers. Pink Energy also alleged that Generac did not disclose to Pink Energy that a firmware update, held out as a fix for the SnapRS issues, had known adverse effects and was shutting down entire PWRcell systems.

Then, on October 19, 2022, Generac published preliminary earnings showing dismal financial results for the third quarter of 2022, and announced a $55 million pre-tax charge relating to its clean energy product warranties and expenses, citing a distributor that had filed for bankruptcy.

Finally, on November 2, 2022, Generac released third quarter earnings and lowered guidance on sales by its solar energy business for the remainder of the year by approximately 40%. The lowered guidance was attributed to "the loss of a major customer during the quarter, along with the specific warranty-related issue"-i.e., the defective SnapRS component, which led to Pink Energy's bankruptcy.

Whistleblowers: Persons with non-public information regarding Generac are encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.

Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., San Francisco, Chicago, and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.

Contacts:

Russell Paul, Shareholder
Berger Montague
(215) 875-4601
[email protected]

Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
[email protected]

SOURCE: Berger Montague