Pomerantz Law Firm Files Class Action Against Avis Budget Group Over Alleged Market Manipulation
A class action lawsuit has been filed by Pomerantz LLP on behalf of investors in Avis Budget Group, Inc. (NASDAQ: CAR), alleging market manipulation involving Pentwater Capital Management LP and its executives during the period from February 20, 2025 to April 21, 2026. The lawsuit claims that Pentwater, a major shareholder with approximately 51% economic interest in Avis as of March 2026, orchestrated an aggressive stock-buying campaign that triggered significant volatility and a short squeeze, causing the company's share price to surge by over 419%. This was followed by a sharp decline after Pentwater sold millions of shares for $1.75 billion within two days. The lawsuit seeks remedies under federal securities laws and alleges violations related to market manipulation and insider trading. Avis later disclosed that it had reached an agreement with Pentwater in June 2026, where the firm agreed to pay $650 million to settle alleged violations of Section 16(b) of the Exchange Act concerning short-swing profits by major shareholders.
Tickers: $CAR
Topics: investor-protection market-manipulation securities-fraud