Avis Budget Shareholders Face September Deadline in Market Manipulation Suit
Investors who acquired Avis Budget Group securities between February 20, 2025, and April 21, 2026, have until September 29, 2026, to apply as lead plaintiffs in a class action lawsuit targeting Pentwater Capital Management LP over alleged artificial price inflation and a subsequent stock collapse.
The lawsuit, filed in the United States District Court for the Middle District of Florida, claims Pentwater Capital Management LP amassed a 51% economic interest in Avis Budget Group (NASDAQ: CAR) through common stock and cash-settled swaps. According to the complaint, this aggressive accumulation triggered a short squeeze, driving the stock price from under $200 to an intraday high of $765.94 despite underwhelming business fundamentals.
Legal counsel Joseph E. Levi alleges that after the peak, 4.3 million shares were liquidated across two trading sessions in April 2026, generating $1.75 billion in proceeds. This sell-off caused the share price to plummet by approximately 74.51%. The litigation asserts violations under the Securities Exchange Act of 1934, specifically targeting the alleged manipulation of market prices through a series of tactical trades designed to induce purchases from other market participants.
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