The complaint alleges that Pentwater, which held an approximate 51% economic interest in Avis, exploited its position to drive an artificial surge in the company's stock price. Between April 1 and April 21, 2026, Avis shares skyrocketed from $147.52 to an intraday high of $765.94. This 419% increase preceded a sharp 74.5% collapse by April 28. Following the decline, Avis CEO Brian Choi confirmed that Pentwater liquidated 4.3 million shares for $1.75 billion during that window.

Legal action follows a June 2026 disclosure where Avis reported that Pentwater agreed to pay $650 million to settle allegations regarding short-swing profit violations under the Securities Exchange Act. The class action, led by the Pomerantz Law Firm, seeks to recover damages for investors who acquired securities during the specified period. Affected parties have until September 29, 2026, to apply for lead plaintiff status.