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 operations and financial prospects [1][7]. Group 1: Lawsuit Details - The class action was filed in the United States District Court for the District of New Jersey, seeking to recover damages for all persons 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, along with its subsidiaries, provides car and truck rentals, car sharing, and ancillary products and services across various regions including the Americas, Europe, the Middle East and Africa, Asia, and Australasia [4]. - The company operates several brands, including Avis, Zipcar, and Budget, with a global rental fleet totaling approximately 695,000 vehicles in 2024 [4]. Group 3: Fleet Management and Financial Impact - Effective fleet management is crucial for Avis Budget's profitability, involving proper fleet rotation to avoid depreciation and high maintenance costs [5]. - Following the Covid-19 pandemic, Avis Budget slowed its fleet rotation due to higher vehicle prices, which allowed for better management of fleet costs [6]. - In Q4 2024, Avis Budget reported a significant loss of $1.96 billion, attributed to a change in strategy that accelerated fleet rotations, resulting in a one-time non-cash impairment of $2.3 billion [8]. - 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 that led to a 6.82% drop in stock price [8][9].