Investors Target Pentwater Capital Over Alleged Avis Stock Manipulation

The complaint alleges that Pentwater Capital and its founder, Matthew Halbower, used SEC filings to disclose the size of their growing Avis position while failing to reveal the underlying intent to squeeze the stock. According to the filing, this lack of transparency left investors vulnerable when 4.3 million shares were offloaded in late April 2026, triggering a 74.51% collapse in share value from an April 21 peak of $713.97 to $182.005 by April 28.

Plaintiffs contend that the firm masked its true 51% economic interest through cash-settled swaps and ignored Section 16 insider trading restrictions. While Pentwater reported its share counts, the suit claims these disclosures were misleading because they omitted the objective of unwinding the position at the height of the squeeze. Following the market drop, Avis reached a $650 million settlement to resolve its own Section 16(b) short-swing profit claims. Investors who purchased CAR securities during the class period must apply to serve as lead plaintiff by September 29, 2026.