The investigation centers on the period between February 24 and May 26, 2026, during which Verra allegedly withheld critical details regarding the stability of its partnership with Avis. On May 26, the company disclosed that it had received a termination notice for the contract, prompting an immediate downward revision of its 2026 financial outlook. This revelation erased approximately $1.4 billion in market capitalization, leaving shareholders to contend with severe losses.

Hagens Berman partner Reed Kathrein is now probing whether executives were aware that contract renegotiations had soured long before the public announcement. Following the share price crash, the Board of Directors appointed Jon Keyser as interim President and CEO. Investors seeking to participate in the class action suit as lead plaintiffs have until August 4, 2026, to file their claims. The firm is also encouraging whistleblowers with non-public information to come forward, citing potential rewards under SEC programs for those providing original evidence of corporate misconduct.