The litigation centers on allegations that Halbower personally directed an aggressive accumulation of Avis shares, which the complaint claims artificially inflated the stock price through a short squeeze. According to the filing in the U.S. District Court for the Middle District of Florida, Pentwater and its founder allegedly sold 4.3 million shares for $1.75 billion immediately after the stock hit a peak of $765.94 on April 21, 2026. By April 28, the share price had cratered to $182.005.

Unlike standard securities cases involving corporate entities, this suit explicitly targets Halbower for his individual role as Chief Investment Officer. SEC filings cited in the complaint indicate his personal beneficial ownership of Avis stock rose from 12.3% to 22.2% in just over a month. Joseph E. Levi, the attorney representing the class, argues that the firm's total economic interest reached 51% through a combination of stock and swaps, creating a market distortion that caused significant harm to ordinary shareholders. Avis has separately disclosed a $650 million settlement regarding short-swing profit claims related to these transactions.