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 exploited its position as a major shareholder—owning approximately 51% of Avis—to drive up stock prices through aggressive buying, triggering volatility and short squeezes. The complaint states that between April 1 and April 22, 2026, the price of Avis common stock surged by over 419%, reaching an intraday high of $765.94 before collapsing sharply in subsequent sessions. Pentwater reportedly sold 4.3 million shares for $1.75 billion during this period, contributing to a significant drop in share value and investor losses. In June 2026, Avis disclosed that it had reached an agreement with Pentwater to settle alleged violations of the short-swing profits rule under Section 16(b) of the Exchange Act for $650 million. The case is ongoing.
Tickers: $CAR
Topics: investor-protection market-manipulation securities-fraud