Key Takeaways:
Hagens Berman expanded its investigation into Verra Mobility Corp. after the company lost a $1.4 billion contract and its CEO resigned.
"Our investigation is focused on the extent to which and when Verra and its executives knew that renegotiations with Avis were far from constructive," Reed Kathrein, the Hagens Berman partner leading the probe, said.
The securities class action covers investors who bought Verra shares between Feb. 24 and May 26, 2026. On May 26, Verra disclosed that Avis Budget Group had terminated their contract effective September 2026, prompting the company to cut costs and revise its 2026 outlook. The news sent Verra shares crashing 70% on May 27, erasing $1.4 billion in market capitalization in a single day.
The complaint alleges Verra made false and misleading statements about the true state of its relationship with Avis and the likelihood of contract renewal. On June 1, longtime CEO David Roberts stepped down after 12 years, with the board appointing former Chief Transformation and Legal Officer Jon Keyser as interim president and chief executive.
The lead plaintiff deadline is Aug. 4, 2026. Hagens Berman, a securities litigation firm that has secured more than $2.9 billion in investor recoveries, is examining whether Roberts' departure is causally related to the allegations in the suit.
Verra said it is reviewing the parties' negotiations and handling of confidential information. The company has retained a global search firm for a permanent CEO replacement.
The class action adds legal risk to a company already navigating a leadership vacuum and the loss of its largest customer. Investors will watch for any additional disclosures from Verra regarding the Avis contract termination and the board's search for a permanent CEO.
This article is for informational purposes only and does not constitute investment advice.
