The lawsuit, filed by the Rosen Law Firm, alleges that Pentwater leveraged its status as a major shareholder to trigger a market-wide short squeeze. By March 2026, Pentwater reportedly held a 51% economic interest in Avis through a combination of stock and cash-settled swaps. According to the complaint, the firm’s aggressive purchasing behavior during the class period created extreme volatility, forcing short sellers to cover positions and driving the stock price to levels that significantly benefited Pentwater’s own holdings.
Investors Target Pentwater Capital Over Avis Stock Manipulation Allegations
Pentwater Capital Management LP and its founder, Matthew Halbower, face a class action lawsuit over claims they orchestrated a scheme to artificially inflate Avis Budget Group stock. Investors who traded CAR securities between February 20, 2025, and April 21, 2026, have until September 29 to apply for lead plaintiff status.
Investors who purchased Avis securities during this timeframe may participate in the litigation without out-of-pocket costs. While the court has yet to certify a class, those wishing to serve as a lead representative must file their motion by the September 29 deadline. Prospective plaintiffs can contact attorney Phillip Kim at the Rosen Law Firm to review their eligibility or discuss the ongoing proceedings.
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