Pomerantz Law Firm Announces the Filing of a Class Action Against Avis Budget Group, Inc. and Certain Officers - CAR

Core Viewpoint - A class action lawsuit has been filed against Avis Budget Group, Inc. and certain officers for alleged violations of federal securities laws during the Class Period from February 16, 2024, to February 10, 2025, seeking damages for misleading statements regarding the company's business and operations [1][6]. Group 1: Lawsuit Details - The lawsuit is filed in the United States District Court for the District of New Jersey, representing all individuals and entities that purchased Avis Budget securities during the specified Class Period [1]. - Investors have until June 24, 2025, to request appointment as Lead Plaintiff for the class [2]. Group 2: Company Overview - Avis Budget Group provides car and truck rentals, car sharing, and ancillary services globally, operating brands such as Avis, Zipcar, and Budget, with a global rental fleet of approximately 695,000 vehicles in 2024 [3]. Group 3: Fleet Management and Strategy - Effective fleet management is crucial for Avis Budget's profitability, involving proper fleet rotation to avoid depreciation and high maintenance costs [4]. - Following the Covid-19 pandemic, Avis Budget slowed its fleet rotation due to higher vehicle prices, which allowed for better depreciation management [5]. - In Q4 2024, Avis Budget accelerated fleet rotations to adapt to normalizing vehicle prices, which led to a significant impairment charge and reduced the recoverable value of many vehicles [5][6]. Group 4: Financial Impact - Avis Budget reported a loss of $1.96 billion, or $55.66 per share, for Q4 2024, attributed to a one-time non-cash impairment of $2.3 billion and other charges [7]. - The company's CEO announced a transition to a Board Advisor role, with a new CEO taking over in July 2025, following the financial report [7]. Group 5: Market Reaction - Following the announcement of the financial results and the impairment charge, Avis Budget's stock price fell by $6.12 per share, or 6.82%, closing at $83.59 per share on February 11, 2025 [7].