Levi & Korsinsky Reminds Pentwater Capital Management Investors of the Pending Class Action Lawsuit With a Lead Plaintiff Deadline of September 29, 2026 - CAR

A securities class action alleges that Pentwater Capital Management LP's SEC filings disclosed a growing Avis Budget Group stake in stages while allegedly omitting the trading intentions behind it, leaving purchasers exposed when 4.3 million shares hit the market in two sessions.

NEW YORK, Aug. 5, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP alerts investors in Avis Budget Group, Inc. (NASDAQ: CAR) that a securities class action has been filed on behalf of shareholders who purchased or otherwise acquired Avis securities between February 20, 2025 and April 21, 2026. Check if you might be eligible to recover your investment losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

CAR shares reached an intraday high of $765.94 on April 21, 2026, before they started to falter. The stock closed on April 21 at $713.97, then fell $270.03 per share, or 37.82%, in the single session on April 22, and ultimately closed at $182.005 on April 28, 2026, a total decline of $531.97 per share, or 74.51%. The lead plaintiff deadline is September 29, 2026.

What the SEC Filings Disclosed

SEC filings stated the size of the position as it grew. A Form 3 filed February 24, 2026 reported beneficial ownership of 3,562,100 Avis shares. A Schedule 13G filed March 6, 2026 reported 4,327,200 shares, or 12.3% of outstanding stock, including 254,700 shares issuable upon exercise of call options. An April 7, 2026 filing reported 7,824,100 shares, or 22.2%, including 775,800 shares issuable upon call option exercise. Disclosure language indicated an economic interest of 39% as of February 20, rising to 51% by March through stock and cash-settled swaps.

What Plaintiffs Allege Was Missing

The complaint challenges the adequacy of what accompanied those position reports. According to the complaint, the filings quantified an escalating stake without conveying that the accumulation was allegedly designed to squeeze a heavily shorted stock and that the position would be unwound at the peak. The action alleges the omitted information concerned market supply and demand for Avis securities, and that purchasers acquired shares at manipulated prices in reliance on an assumption of a market free of manipulation.

Disclosure Gaps Alleged

• Position size was reported, but the alleged short-squeeze strategy behind the accumulation was allegedly not
• Cash-settled swap exposure allegedly obscured the true 51% economic interest from ordinary market participants
• Section 16 insider status attached on February 20, 2026, yet the alleged intent to trade within the six-month window was allegedly undisclosed
• The sale of 4.3 million shares for $1.75 billion gross proceeds on April 22 and April 23 became public only afterward, per the complaint
• On June 22, 2026, Avis disclosed a Settlement and Release Agreement providing for a $650,000,000 cash payment to resolve its Section 16(b) short-swing profits action, subject to court approval

Why Generic Filings May Not Protect

"Position-size filings tell investors how much is owned, not what is planned, and the complaint here alleges that gap left purchasers exposed to a 74.51% decline they had no way to anticipate," -- Joseph E. Levi, Esq.

Investors who purchased CAR securities during the Class Period and suffered losses may be eligible to seek compensation, regardless of whether they still hold the shares.

Learn more about the case or call (212) 363-7500.

Levi & Korsinsky, LLP — Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.

Frequently Asked Questions About the CAR Lawsuit

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: Who are the defendants named in the CAR lawsuit? A: The complaint names Pentwater Capital Management LP and Matthew Halbower, Pentwater's Founder, Chief Executive Officer, and Chief Investment Officer.

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 is the CAR lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is September 29, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.

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 documents do I need to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

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. No upfront fees, no retainer, and no out-of-pocket costs. Any attorneys' fees and expenses awarded to class counsel are subject to court approval.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.

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