| COMPANY |
Holley Inc. |
| COURT |
United States District Court for the Western District of Kentucky |
| CASE NUMBER |
23-cv-00148 |
| JUDGE |
The Hon. Gregory N. Stivers |
| CLASS PERIOD |
July 21, 2021 trough February 6, 2023 |
| SECURITY TYPE |
Securities |
Case Background:
A class action lawsuit has been filed on behalf of all persons who purchased or otherwise acquired Holley Inc. ("Holley" or the "Company"), f/k/a Empower Ltd. ("Empower") securities between July 21, 2021 and February 6, 2023, 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: (1) 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; (2) 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; (3) 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; (4) 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; (5) 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 (6) 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.
Current Status of Case:
On April 26, 2024, the Lead Plaintiff filed an Amended Complaint. Defendants filed Motions to Dismiss the Amended Complaint on June 28, 2024. This action is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.