#United States #Class Action #Florida #Pomerantz Law Firm #Avis Budget Group

Class Action Filed by Pomerantz Law Firm Against Avis Budget Group

On September 17, 2026, Pomerantz LLP announced that it has initiated a class action lawsuit targeting investors of Avis Budget Group, Inc. (NASDAQ: CAR). This legal action, which is filed in the United States District Court for the Middle District of Florida under docket number 26-cv-02275, seeks to represent all buyers of Avis securities, spanning from February 20, 2025, to April 21, 2026, collectively referred to as the Class Period. The core of the allegations revolves around claims that the defendants engaged in activities violating federal securities laws, particularly under Sections 9(a) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 issued under it, against Pentwater Capital Management LP and its Chief Executive Officer, Matthew Halbower.

Background of the Case

According to the lawsuit, Pentwater Capital Management, identified as one of the largest shareholders of Avis with an economic interest of approximately 51% as of March 2026, is accused of manipulating the market for Avis securities. The firm allegedly executed a series of aggressive stock purchases during the Class Period that created significant volatility and a short squeeze, culminating in an inflated stock price. This market manipulation occurred even when Avis had recently reported disappointing financial outcomes for 2025.

From April 1 to April 22, 2026, Avis's stock, which had been trading below $200 per share, surged to an astonishing high of $765.94 during intraday trading on April 21. This represents a staggering increase of approximately 419% from an opening price of $147.52 on April 1. However, this meteoric rise was followed by a sharp decline, with the share price dropping 74.51%, ultimately closing at $182.005 on April 28, 2026.

Defendants' Actions

During an earnings call on April 29, 2026, CEO Brian Choi disclosed that Pentwater had sold off 4.3 million shares between April 22 and April 23, totaling $1.75 billion in sales. This substantial sell-off is believed to have significantly contributed to the sharp decline in Avis's stock price, causing considerable losses for other investors.

As a response to these allegations, Avis filed a report with the Securities and Exchange Commission on June 18, 2026, noting that Pentwater had agreed to pay $650 million to not violate Section 16(b) of the Exchange Act, a rule addressing short-swing profits requirements for significant shareholders. Subsequently, Avis sought legal recourse, submitting a redacted complaint against Pentwater, Halbower, and affiliated entities for purported market abuses.

Implications for Investors

Investors who purchased Avis shares during the Class Period have a limited window; they must petition the court to be appointed as Lead Plaintiff by September 29, 2026. Those affected are encouraged to review the complaint at Pomerantz Law Firm's website and reach out to Danielle Peyton at 646-581-9980 or via email for further queries or assistance with the lawsuit registration process.

About Pomerantz Law Firm

Pomerantz LLP is distinguished in the domain of corporate and securities litigation, with a legacy stemming from its founder, Abraham L. Pomerantz. The firm has established a reputable history of safeguarding investors' rights and successfully navigating complex securities fraud cases across its global offices in New York, Chicago, London, Paris, and Tel Aviv. Having secured billions of dollars in settlements, Pomerantz remains committed to its mission of pursuing justice for those impacted by corporate misconduct.