Key Takeaways:
Avis shareholders face a Sept 29 deadline to join a class action alleging Pentwater Capital Management manipulated CAR stock through a short squeeze.
"Our practice focuses on restoring investor capital and ensuring corporate accountability to uphold market integrity," Peretz Bronstein, founding partner at Bronstein, Gewirtz & Grossman, said.
The lawsuit, filed on behalf of investors who purchased Avis securities between Feb 20, 2025 and April 21, 2026, alleges Pentwater and its founder Matthew Halbower orchestrated a scheme to inflate the stock price. Pentwater held an economic interest of approximately 51 percent of Avis through common stock and cash-settled swaps as of March 2026, according to the complaint. Aggressive share purchases during the class period triggered a short squeeze that drove CAR to $765.94 intraday on April 21 — a 419 percent surge from its $147.52 opening on April 1 — before the stock closed at $713.97 and then collapsed 74.51 percent to $182.005 by April 28.
The case, Hakimian v. Pentwater Capital Management LP, No. 26-cv-02275, is pending in the U.S. District Court for the Middle District of Florida. Investors seeking to serve as lead plaintiff must file papers by Sept 29. Representation is on a contingency fee basis, with no out-of-pocket costs for class members.
Multiple firms — including Bernstein Liebhard, Kahn Swick & Foti, and Rosen Law Firm — have issued investor notices for the same class period, reflecting the breadth of the alleged scheme. The complaint names Pentwater and Halbower, who serves as CEO and chief investment officer, as defendants alongside Avis and certain senior officers. The class definition also covers investors who bought Avis common stock to cover short positions during the class period.
Bernstein Liebhard has recovered more than $3.5 billion for clients since 1993, while Rosen Law Firm was ranked No. 1 by ISS Securities Class Action Services for securities class action settlements in 2017. Kahn Swick & Foti, whose partners include former Louisiana Attorney General Charles C. Foti Jr., was ranked among the top 10 plaintiff firms nationally by total settlement value.
The Sept 29 deadline marks the first procedural hurdle in a case that could reshape how activist investors use derivatives to build outsized positions in listed companies. Investors who purchased Avis securities during the class period should monitor the deadline, as the appointed lead plaintiff will direct the litigation on behalf of all class members.
This article is for informational purposes only and does not constitute investment advice.
