Levi & Korsinsky, LLP notifies investors in Avis Budget Group, Inc. (NASDAQ: CAR) that a securities class action has been filed on behalf of shareholders who purchased or acquired securities between February 20, 2025 and April 21, 2026. Find out if you could qualify to recover your per-share losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

CAR shares peaked at $765.94 on April 21, 2026, before they quickly reversed course, ultimately closing at just $182.005 on April 28, 2026. The lead plaintiff deadline is September 29, 2026.

Halbower’s Personal Ownership Filings During the Class Period

Unlike many securities actions where an executive’s role is inferred, the complaint identifies Halbower as a named defendant whose own reported holdings tracked the alleged accumulation. A Schedule 13G filed March 6, 2026 reported that Pentwater and Halbower individually each held 4,327,200 Avis shares, or 12.3% of outstanding stock, including 254,700 shares issuable upon exercise of call options. By an April 7, 2026 filing, each reported 7,824,100 shares, or 22.2%, including 775,800 shares issuable upon call options, as alleged.

Halbower’s Alleged Role in the Accumulation and Sell-Off

  • Founder, Chief Executive Officer, and Chief Investment Officer of Pentwater throughout the Class Period, as named in the action

  • Personally reported beneficial ownership rising from 12.3% to 22.2% of Avis common stock within roughly one month

  • Reported call option positions that allegedly added to an economic interest Avis’s own management later described as reaching 51% through stock and cash-settled swaps

  • Alleged to have directed a sophisticated event-driven fund whose buying, combined with heavy short interest, allegedly produced a short squeeze

  • Named alongside Pentwater in claims under Sections 9(a) and 10(b) of the Exchange Act and Rule 10b-5

  • Also named in a separate Section 16(b) action by Avis that was resolved for $650 million in cash, subject to court approval

Why an Individual Defendant Matters Here

The complaint alleges 4.3 million shares were sold for $1.75 billion in gross proceeds on April 22 and April 23, 2026, and that dumping that volume into the market in two sessions caused the share price to plunge.

“When an investment firm’s founder personally reports beneficial ownership of a stake this large, questions about who directed the alleged accumulation and the alleged two-day sell-off become central to the case. Investors are entitled to a market free from manipulation.” — Joseph E. Levi, Esq.

Submit your information here or call (212) 363-7500.

ABOUT LEVI & KORSINSKY, LLP — Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report. Investors who suffered losses have until September 29, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the CAR Lawsuit

Q: Who are the defendants named in the CAR lawsuit? A: The complaint names Pentwater Capital Management LP, alleged to have become a Section 16 insider on February 20, 2026, and Matthew Halbower, Pentwater’s Founder, Chief Executive Officer, and Chief Investment Officer, who is alleged to have personally reported beneficial ownership of Avis common stock and call options.

Q: What is the CAR class action lawsuit about? A: A securities class action has been filed alleging that Pentwater Capital Management LP and its CEO engaged in a scheme that artificially inflated the market price of Avis Budget Group, Inc. (NASDAQ: CAR) securities between February 20, 2025 and April 21, 2026. Pentwater then sold a significant portion of its CAR ownership, allegedly reaping the benefit of the inflated stock price while sending the stock tumbling nearly 75%.

Q: How much did CAR stock drop? A: Shares reached a peak closing price of $713.97 on April 21, 2026. The following day, the stock fell approximately 37.82%, or $270.03, to close at $443.94. Shares slid a further approximate $261.94, closing at only $182.005 on April 28, 2026. Investors who purchased during the Class Period at allegedly inflated prices may be eligible to seek compensation.

Q: What court was the CAR class action filed in? A: The case was filed in the United States District Court for the Middle District of Florida.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What do CAR investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.

Q: What if I already sold my CAR shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What does it cost me to participate? A: There is no upfront cost to contact the firm. Securities class actions are generally handled on a pure contingency basis. No upfront fees, no retainer, and no out-of-pocket costs. Any attorneys’ fees and expenses awarded to class counsel are subject to court approval.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Attorney Advertising. Prior results do not guarantee similar outcomes.

Media gallery

About The Author
Business Wire