CAR UPCOMING DEADLINE: Levi & Korsinsky Alerts Pentwater Capital Management LP Stockholders of Securities Class Action - Contact the Firm

Important Notice Regarding Alleged Market Manipulation and Short Squeeze Misrepresentations in Avis Budget Group Securities

NEW YORK, Aug. 12, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Avis Budget Group, Inc. (NASDAQ: CAR) that a class action has been filed on behalf of shareholders who purchased or otherwise acquired Avis securities between February 20, 2025 and April 21, 2026. Find out if you could qualify to recover your losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

CAR shares surged roughly 419% between April 1 and April 21, 2026, then collapsed 74.51%. Applications to serve as lead plaintiff must be filed by September 29, 2026.

The Alleged Pump-and-Dump Methodology

According to the lawsuit, Pentwater Capital Management LP accumulated a total economic interest of approximately 51% of Avis through common stock and cash-settled swaps by March 2026. The complaint alleges that this aggressive purchasing, combined with heavy existing short interest in CAR, triggered a short squeeze that drove the stock from under $200 per share to an intraday high of $765.94. The lawsuit contends that the resulting price action did not reflect Avis's underlying business fundamentals, which included disappointing full-year 2025 results.

How the Alleged Scheme Affected Reported Market Prices

The complaint alleges that after the stock peaked, 4.3 million shares were sold into the market across April 22 and April 23, 2026, generating gross proceeds of $1.75 billion. The lawsuit contends that dumping that quantity of stock in two trading sessions caused CAR's price to plunge, harming investors who purchased at allegedly manipulated prices. Claims are asserted under Sections 9(a) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.

Key Manipulation Allegations for Shareholders

• The complaint alleges a series of transactions designed to raise CAR's price for the purpose of inducing purchases by others.
• Purchases allegedly continued in the midst of a short-squeeze dynamic, forcing short sellers to cover at escalating prices.
• The lawsuit contends the accumulated stake reached 51% total economic interest through stock and cash-settled swaps.
• Approximately 4.3 million shares were allegedly liquidated over two sessions for $1.75 billion in proceeds.
• The action alleges the scheme was structured in a way that made the conduct difficult for ordinary market participants to detect.
• Investors who bought CAR common stock to cover short positions during the Class Period are included in the proposed class.

"This case presents important questions about market manipulation and disclosure obligations when a single holder allegedly amasses a 51% economic interest in a widely shorted stock. The allegations concerning the sale of 4.3 million shares over two trading sessions warrant close scrutiny on behalf of investors." -- Joseph E. Levi, Esq.

Submit your information here or call (212) 363-7500.

WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the CAR Lawsuit

Q: What is the CAR class action lawsuit about? A: A securities class action has been filed alleging that Pentwater Capital Management LP and its CEO engaged in a scheme that artificially inflated the market price of Avis Budget Group, Inc. (NASDAQ: CAR) securities between February 20, 2025 and April 21, 2026. Pentwater then sold a significant portion of its CAR ownership, allegedly reaping the benefit of the inflated stock price while sending the stock tumbling nearly 75%.

Q: Who is eligible to join the CAR investor lawsuit? A: Investors who purchased or acquired CAR stock or securities between February 20, 2025 and April 21, 2026 and suffered financial losses may be eligible, including those who bought common stock to cover a short position. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: How much did CAR stock drop? A: Shares reached a peak closing price of $713.97 on April 21, 2026. The following day, the stock fell approximately 37.82%, or $270.03, to close at $443.94. Shares slid a further approximate $261.94, closing at only $182.005 on April 28, 2026. Investors who purchased during the Class Period at allegedly inflated prices may be eligible to seek compensation.

Q: What court was the CAR class action filed in? A: The case was filed in the United States District Court for the Middle District of Florida.

Q: What do CAR investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my CAR shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What does it cost me to participate? A: There is no upfront cost to contact the firm. Securities class actions are generally handled on a pure contingency basis, with no retainer and no out-of-pocket costs. Any attorneys' fees and expenses awarded to class counsel are subject to court approval.

CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
[email protected]\
Tel: (212) 363-7500\
Fax: (212) 363-7171

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SOURCE Levi & Korsinsky, LLP