Avis Stock Manipulation Class Action 

Investors who suffered losses from trading Avis Budget Group, Inc. (NASDAQ: CAR) securities between February 20, 2026 and April 21, 2026 may have legal rights.

Pentwater Accused of Manipulating Avis Securities

A securities class action alleges that Pentwater Capital Management LP, MCH PWCM Holdings, Inc., and Matthew C. Halbower manipulated the market for Avis Budget Group, Inc. (“Avis”) securities through an alleged short-squeeze scheme. Avis is not named as a defendant in the September 10, 2026 complaint.

The action is captioned Arjang v. Pentwater Capital Management LP, et al., Case No. 1:26-cv-07884, filed September 10, 2026 in the U.S. District Court for the Southern District of New York.

The complaint seeks to represent persons and entities, other than the defendants, that between February 20, 2026 and April 21, 2026, inclusive, (1) purchased or otherwise acquired Avis securities, including purchasers or acquirers of swaps and those who bought Avis common stock to cover a short position, or (2) sold Avis securities short, including sellers of calls who then purchased similar contracts to cover.

What Does the Complaint Allege?

According to the complaint, Pentwater was Avis’s second-largest shareholder, holding approximately 8.4% of Avis’s outstanding stock as of June 30, 2025. The complaint alleges that the defendants devised a plan to manipulate the market by buying a significant number of Avis shares while the stock was heavily shorted, generating a short squeeze.

The complaint alleges that the resulting rapid price increase forced short sellers to close their positions by purchasing additional Avis shares, creating a feedback loop that placed further upward pressure on the stock price. It further alleges that Pentwater rapidly increased its Avis holdings during this period, despite no significant change in Avis’s fundamentals that would justify the increase.

On February 24, 2026, Pentwater disclosed that it had increased its Avis stake to more than 10%, with 3,562,100 shares as of February 20, 2026. By April 7, 2026, Pentwater reported holding more than 7.8 million Avis shares, representing approximately 22.2% of the Company’s outstanding shares.

Avis Shares Rise Sharply Before Pentwater’s Alleged Selloff

The complaint alleges that Avis shares closed at $92.90 on February 25, 2026 and then rose to $713.97 on April 21, 2026, an increase of approximately 668.5% in less than two months.

According to the complaint, Pentwater then sold approximately 4.3 million Avis shares on April 22 and April 23, 2026, realizing gains of approximately $1.75 billion. Avis shares closed at $229.14 on April 23, a decline of approximately $484.83, or nearly 68%, from the April 21 closing price.

The complaint alleges that the defendants’ conduct caused losses to investors and other market participants who engaged in transactions covered by the proposed Class, including purchasers of Avis securities and certain investors with short positions.

September 29, 2026 Lead Plaintiff Deadline

Investors who wish to seek appointment as lead plaintiff must do so by September 29, 2026. Investors do not need to seek appointment as lead plaintiff to remain potential members of the proposed class or to be eligible to share in any potential recovery.

Traded Avis Securities During the Class Period? Contact Kehoe Law Firm

If you purchased or otherwise acquired Avis securities, bought Avis common stock to cover a short position, or engaged in other transactions described in the complaint between February 20, 2026 and April 21, 2026 and suffered financial losses, you are encouraged to complete Kehoe Law Firm’s confidential Stockholder Information Request Form  or send us a message to discuss your potential legal rights.

For a free, no-obligation legal evaluation, contact:

Michael Yarnoff, Esq.
(215) 792-6676, Ext. 804
[email protected]
[email protected]

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm representing investors, consumers, and employees in matters involving securities fraud, corporate misconduct, mergers and acquisitions, antitrust violations, whistleblower claims, data breaches, consumer fraud, employment law violations, and retirement-plan mismanagement. Its attorneys have served as lead or co-lead counsel in major securities cases, recovering more than $10 billion for institutional and individual investors.

Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning plaintiffs are not responsible for attorneys’ fees or litigation expenses. Any request for attorneys’ fees and expenses will be subject to court approval.

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