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How Wheels Came Off of Hertz' Accounting

Tammy Whitehouse | June 24, 2014

It's an experience almost anyone can appreciate: your car seems to perform so well for so long—then, suddenly, all the little things go at once. And you're stuck on the side of the road.

So seems to be the case with $10.7 billion Hertz, the auto rental company that warned on June 6 of a massive financial restatement yet to come. In a Form 8-K filing, Hertz warned that its current quarterly filing would be late and that its financial statements for 2011 should no longer be relied upon. Even worse, the 2012 and 2013 annual statements might be called into question too before Hertz completes its investigation into what went wrong.

The company also disclosed it has identified at least one material weakness in internal control over financial reporting and that disclosure controls and procedures were ineffective as of Dec. 31, 2013. Its share price... To get the full story, subscribe now.