Generac Investor Claims Misconduct, C-Suite Insider Trading (1)

Generac Holdings Inc. directors and executives misled the company’s business partners, consumers, and investors about a safety issue while two of them cashed in by selling their own shares at inflated prices, an investor says in a derivative suit.

They also caused Generac to repurchase shares at the inflated prices, overpaying by $174 million, investor Hughes Gervat says on behalf of the company. He filed his suit Feb. 3 in the US District Court for the Eastern District of Wisconsin.

The directors and executives subjected the company to investigation and litigation costs, along with potential liability over the safety issue, ...