Avis Budget Shareholders Face September Deadline in Pentwater Lawsuit

The legal action centers on an alleged accumulation-and-liquidation scheme that saw Avis Budget stock climb over 400% before a sharp collapse. The complaint filed in the U.S. District Court for the Middle District of Florida claims that Pentwater, led by Halbower, orchestrated a short squeeze through aggressive purchasing. According to the filing, Pentwater increased its stake to 22.2% by early April 2026, pushing the stock to an intraday high of $765.94 on April 21.

Following that peak, the firm reportedly offloaded 4.3 million shares over two trading sessions, generating $1.75 billion in proceeds. The aftermath was swift: Avis shares plummeted 37.82% on April 22 alone and continued to slide, closing at $182.005 by April 28. Joseph E. Levi, an attorney representing the class, noted that the rapid sequence of events raises significant questions regarding market integrity. Avis Budget has since disclosed a $650 million cash settlement related to short-swing profit claims, a move currently awaiting court approval.