Holley Inc. f/k/a Empower, Ltd
A securities class action has been filed in the USDC – W.D.KY. against Holley Inc. f/k/a Empower, Ltd. (HLLY) (Holley” or the “Company”), on behalf of a class consisting of all persons and entities that purchased or otherwise acquired Holley securities between July 21, 2021 through February 6, 2023, both dates inclusive (the “Class Period”).
The Complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:
- as a result of Holley’s extensive focus on its direct-to-consumer (“DTC”) channel, Holley’s critically important relationships with its resellers and distributors, whose business made up the vast majority of Holley’s revenue, were suffering significant damage;
- Holley used discounting and other similar efforts to grow its DTC channel, which undermined the pricing discipline Holley historically had with its resellers and distributors, and further damaged Holley’s relationship with its resellers and distributors;
- as a result of Holley’s strained relationships with its resellers and distributors, those resellers and distributors were decreasing their purchases of Holley products, returning products already purchased at significant levels that were far above historical norms, and increasing their purchases of competitors’ products;
- Holley’s growing DTC channel could not offset the negative financial impact of Holley’s increasingly strained relationships with its resellers and distributors and, as a result, Holley’s critical relationship with resellers and distributors was deteriorating;
- Holley had failed to successfully integrate and capture synergies from its numerous acquisitions, which left Holley with inefficient operations, excess costs, and inventory management problems; and
- Holly benefited from COVID-related stimulus money that temporarily boosted its sales and performance, and despite this unsustainable, temporary boost, defendants misled investors to believe the growth was sustainable and the result of persistent demand, and supportive of positive financial guidance.
On July 28, 2022, Holley announced preliminary financial results that missed expectations and slashed its full year 2022 outlook. On this news, the price of Holley stock fell more than 47% over two trading sessions.
If you purchased Holley securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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