Investors Launch Class Action Suit Against Pentwater Capital

The complaint, filed in the United States District Court for the Middle District of Florida, centers on an alleged short squeeze triggered by Pentwater between February 20, 2025, and April 21, 2026. As one of Avis’s largest shareholders, holding approximately 51% of the company through stock and cash-settled swaps, Pentwater is accused of aggressive purchasing that forced short sellers to buy back shares, driving the price from below $200 to an intraday high of $765.94. This surge represented a 419% increase from April 1 levels, only for the stock to collapse by 74.51% by April 28, 2026.

Avis CEO Brian Choi later revealed that Pentwater offloaded 4.3 million shares during the peak, generating $1.75 billion in proceeds. This rapid liquidation catalyzed the subsequent price plunge. The legal action further highlights a June 2026 settlement in which Pentwater agreed to pay Avis $650 million to resolve allegations regarding "short-swing profits" violations under the Securities Exchange Act. Investors who acquired Avis securities during the designated class period have until September 29, 2026, to request appointment as lead plaintiff.