The legal scrutiny follows a volatile period for the NASDAQ-listed company. On May 26, 2026, Verra disclosed that Avis would terminate their contract in September, a revelation that caused share prices to plummet 70% in a single day. This market crash wiped out approximately $1.4 billion in shareholder value, prompting allegations that executives misled investors regarding the stability of the Avis relationship.
Reed Kathrein, the partner leading the Hagens Berman investigation, stated that the firm is focused on determining when executives became aware that contract renegotiations were failing. While the board has appointed former Chief Transformation and Legal Officer Jon Keyser as interim CEO, the firm is actively soliciting information from investors and potential whistleblowers. The deadline for lead plaintiffs to come forward is August 4, 2026, as the investigation digs into potential corporate negligence during the February to May class period.
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