Hertz Investor Sues Certares, Knighthead on $2.8 Billion Buyback

A Hertz Global Holdings Inc. investor sued affiliates of its private equity backers, Certares Management LLC and Knighthead Capital Management LLC, over their role in the car rental giant’s $2.8 billion stock buyback program.

The shareholder derivative lawsuit, which also targets members of Hertz’s board, accuses the two investment firms of exploiting their influence over the company after its 2020 bankruptcy to gain a majority stake without having to spend an additional dime.

The suit was filed in Delaware’s Chancery Court, where judges sitting without juries specialize in business disputes that can have blockbuster stakes thanks to Delaware’s status as ...