Pomerantz Law Firm Announces the Filing of a Class Action on Behalf of Investors in Avis Budget Group, Inc. - CAR

NEW YORK, Aug. 6, 2026 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed on behalf of investors in Avis Budget Group, Inc. ("Avis" or the "Company") (NASDAQ: CAR).   The class action, filed in the United States District Court for the Middle District of Florida, and docketed under 26-cv-02275, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Avis securities (including those who bought Avis common stock to cover a short position) between February 20, 2025 and April 21, 2026, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 9(a) and 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against Pentwater Capital Management LP ("Pentwater") and its Founder, Chief Executive Officer ("CEO"), and Chief Investment Officer Matthew Halbower ("Halbower").

If you are an investor who purchased or otherwise acquired Avis securities (including if you bought Avis common stock to cover a short position) during the Class Period, you have until September 29, 2026, to ask the Court to appoint you as Lead Plaintiff for the class.  A copy of the Complaint can be obtained at www.pomerantzlaw.com.  To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.  

[Click here for information about joining the class action]

The complaint alleges that Defendants Pentwater and Halbower orchestrated a scheme to manipulate the market for Avis securities.  Taking advantage of Pentwater's position as one of Avis's largest shareholders, holding a total economic interest of approximately 51% of the Company through stocks and cash-settled swaps as of March 2026, Defendants' aggressive purchasing of Avis stock during the Class Period triggered unusual volatility and a short squeeze in the market for Avis securities – i.e., a rapid surge in the Company's stock price caused by short sellers buying back shares to cut their losses, thereby fueling further price spikes – all of which served to greatly increase the value of Pentwater's holdings of Avis stock.

Between April 1 and April 22, 2026, the market price of Avis common stock climbed dramatically, after trading below $200 per share for the majority of the preceding twelve months and despite the disappointing full-year 2025 financial results Avis had recently released.  Avis's stock price reached a staggering high of $765.94 per share during intraday trading on April 21, an increase of approximately 419% over its $147.52 opening price on April 1, before closing at $713.97 per share.  Then, over the following trading sessions, Avis's share price collapsed by 74.51%, closing at $182.005 per share on April 28, 2026.

One day later, during an April 29, 2026 earnings call, Avis CEO Brian Choi told investors that Pentwater had sold 4.3 million shares of Avis stock between April 22 and 23, 2026, for sales proceeds of $1.75 billion.  Dumping Pentwater's Avis holdings into the market during such a short period of time caused Avis's share price to plunge, damaging investors.

On June 18, 2026, Avis disclosed in a filing with the United States Securities and Exchange Commission that Pentwater had agreed to pay Avis $650 million to settle alleged violations of Section 16(b) of the Exchange Act, a "short-swing profits" rule that requires owners of more than 10% of a class of publicly traded equity securities to disgorge any profits from trading in the issuer's equity securities within a period of less than six months.  On June 29, 2026, Avis filed a heavily redacted copy of a complaint, originally filed under seal, against Pentwater, Halbower, and a series of apparently related entities, setting forth Avis's allegations.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com. 

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CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP