The lawsuit claims Pentwater built a 51% economic interest in Avis through a combination of direct stock purchases and cash-settled swaps. According to the complaint, this aggressive accumulation created artificial market support, driving the share price from a March 20, 2026, close of $99.90 to an intraday high of $765.94 on April 21. Following this peak, Pentwater reportedly liquidated 4.3 million shares for $1.75 billion over two trading sessions.
Investors Eye Lead Role in Avis Budget Securities Class Action
A securities class action filed in the Middle District of Florida alleges that Pentwater Capital Management LP artificially inflated Avis Budget Group stock before executing a massive sell-off. Investors who acquired CAR shares between February 20, 2025, and April 21, 2026, face a September 29, 2026, deadline to seek lead plaintiff status.
The subsequent market reaction was severe. On April 22, 2026, CAR shares plummeted 37.82%, or $270.03, to close at $443.94. By April 28, the stock had declined a total of 74.51% from its high, closing at $182.005. While Avis later disclosed that Pentwater agreed to pay $650 million to settle separate Section 16(b) claims, current litigation focuses on the losses sustained by shareholders who purchased during the alleged inflation period. Joseph E. Levi of Levi & Korsinsky LLP is representing the potential class, noting that investors with significant losses may be appointed by the court to oversee the litigation process.
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