Avis Budget Group (CAR) Pentwater Short Squeeze Manipulation Case

Attorneys review the case details to decide whether to proceed with a class action.

M.D. Florida

Court

2:26-cv-02275

Case number

02/20/2025

Class period Start

04/21/2026

Class period End

09/29/2026

Lead Plaintiff motion deadline

$CAR investors filed a claim against Pentwater Capital Management and its CEO Matthew Halbower for orchestrating a pump-and-dump scheme that manipulated the price of Avis Budget Group stock.
After Pentwater built a stake reaching a 51% economic interest in Avis, triggering a short squeeze that drove $CAR up over 600% to a peak of $765.94 per share, Pentwater dumped 4.3 million shares for $1.75 billion in proceeds, causing $CAR to collapse 74.51% over the following days.
$CAR investors can join this case to be notified about potential recovery.
Case Details:

Beginning February 20, 2026, when Pentwater crossed the 10% ownership threshold in Avis, Pentwater and CEO Matthew Halbower continued aggressively accumulating Avis stock, disclosing an economic interest of 39% in February that grew to 51% by March 2026 through stock and cash-settled swaps. 

This buying, combined with heavy existing short interest in Avis shares, created a short squeeze: short sellers were forced to repurchase shares at climbing prices to cover their positions, driving Avis's stock price from $99.90 on March 20, 2026 to a close of $713.97 on April 21, 2026, an increase of more than 600% in four weeks.

Then, on April 22 and 23, 2026, Pentwater sold 4.3 million shares of Avis stock for $1.75 billion in proceeds. The sudden sale of that volume of stock caused Avis's share price to collapse, falling 37.82% in a single session on April 22 and continuing to slide to a close of $182.005 per share by April 28, 2026, a total decline of 74.51% from its April 22 close. 

On April 29, 2026, Avis's CEO told investors on an earnings call that Pentwater had been the only insider active in the stock during the period of volatility, and that Pentwater had acknowledged its share sales violated the SEC's Section 16(b) short-swing profit rule. Pentwater later agreed to pay Avis $650 million to settle the resulting claims.

Based on these events, $CAR investors filed a claim against Pentwater Capital Management and Matthew Halbower, alleging the defendants:
Engaged in a pump-and-dump scheme that artificially inflated the price of Avis stock.
Exploited a short squeeze created by their own aggressive share purchases.
Dumped a massive volume of shares in a compressed window, causing Avis's stock price to collapse and damaging investors.
Investors argue Pentwater Capital Management manipulated the market for Avis stock, causing losses when the scheme unwound.

Case Type

US Securities Class Action

Case Status

Attorney Investigation

Alleged Offence

Price manipulation

Suspected Party

Hedge Fund

Security Type

Stocks

Trade Direction

Long

Shock Event Date

04/22/2026

Filing date

08/31/2026

Lead Plaintiff Deadline

09/29/2026