The complaint alleges that between February 20, 2025, and April 21, 2026, Pentwater leveraged its status as a majority stakeholder to drive up the price of Avis securities. By aggressively purchasing stock, the firm reportedly initiated a short squeeze, propelling shares from under $200 to an intraday peak of $765.94 on April 21. Following this surge, the stock price plummeted by 74.5% by April 28, 2026.
Pomerantz LLP Files Class Action Against Pentwater Capital Over Avis Stock
A federal class action lawsuit filed in the Middle District of Florida accuses Pentwater Capital Management and its CEO, Matthew Halbower, of orchestrating a market manipulation scheme that triggered an artificial short squeeze in Avis Budget Group stock, causing massive price volatility and significant losses for retail investors.
Evidence surfaced during an April 29 earnings call when Avis CEO Brian Choi revealed that Pentwater had offloaded 4.3 million shares between April 22 and 23, generating $1.75 billion in proceeds. This rapid liquidation triggered the subsequent market collapse. By June 2026, Pentwater agreed to pay Avis $650 million to settle allegations regarding violations of the "short-swing profits" rule under Section 16(b) of the Exchange Act. Investors seeking to participate in the class action must petition the court to be appointed as lead plaintiff by September 29, 2026.
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