Step 1
Unite with Fellow Investors
Step 2
Choose the Best Attorney
Step 3
Provide Documents
Step 4
Follow Case Progress
Step 5
Get Payout
CAR.US
id: 1578
Avis Budget ($CAR) Accelerated Fleet Rotation and $2.3B Impairment Case
Investors can submit applications for the lead plaintiff role.
D. New Jersey
Court2:25-cv-03332
Case number02/16/2024
Class period Start02/10/2025
Class period End06/25/2025
Lead Plaintiff motion deadline- $CAR investors filed a claim against Avis Budget Group for hiding its plan to accelerate fleet rotation, which led to a massive $2.3 billion impairment charge.
- After announcing the loss and a CEO transition on February 11, 2025, $CAR dropped 6.8% in a single day.
Case Details:
Between February 16, 2024 and February 10, 2025, Avis Budget promoted its strong fleet management strategy, claiming it maintained a disciplined approach to vehicle buying, selling, and utilization. Executives highlighted that the company was benefiting from a “normalized” vehicle supply and made positive comments about cost management and profitability.
However, during this time, Avis had secretly decided to accelerate its fleet rotation, swapping older vehicles for new 2025 models much faster than previously disclosed. This strategy sharply shortened the useful life of a large portion of its fleet, leading to a significant decline in the recoverable value of its vehicles.
On February 11, 2025, Avis announced a $1.96 billion quarterly loss driven by a $2.3 billion non-cash impairment tied to the accelerated fleet rotation. The company also disclosed that CEO Joe Ferraro would step down later in 2025. Following the news, $CAR fell 6.8%, closing at $83.59 per share.
Executives later admitted they were aware that the fleet acceleration would likely cause a massive impairment but failed to disclose it earlier, misleading investors about the company’s true financial position.
Based on these events, $CAR investors filed a claim against Avis Budget, accusing the company of the following:
- I hid a major shift in fleet strategy that dramatically impacted asset values and future earnings.
- It misled investors about cost controls and the financial risks tied to rapid fleet turnover.
Considering all the representations, investors believe Avis Budget misrepresented key operational risks to maintain its stock price before the impairment disclosure.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02/11/2025
Filing date
04/25/2025
Lead Plaintiff Deadline
06/25/2025