SAN DIEGO, CA - May 5, 2025 (NEWMEDIAWIRE) - Robbins LLP reminds stockholders that a class action was filed on behalf of all persons and entities that purchased or otherwise acquired Avis Budget Group, Inc. (NASDAQ: CAR) securities between February 16, 2024 and February 10, 2025. Avis Budget, with its subsidiaries, provides car and truck rentals, car sharing, and ancillary products and services to businesses and consumers internationally.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that Avis Budget Group, Inc. (CAR) Misled Investors Regarding the Company's Strategy to Accelerate Fleet Rotations
According to the complaint, during the class period, defendants failed to disclose that: (i) Avis Budget crafted and implemented a plan to significantly accelerate its fleet rotation in the fourth quarter of 2024; (ii) the foregoing acceleration shortened the useful life of the majority of the Company’s vehicles in the Americas segment, thereby reducing their recoverable value; (iii) as a result, Avis Budget would be forced to recognize billions of dollars in impairment charges and incur substantial losses; (iv) all the foregoing was likely to, and did, have a significant negative impact on the Company’s financial results; and (v) accordingly, Avis Budget’s financial and/or business prospects were overstated.
Plaintiff alleges that on February 11, 2025, Avis Budget released disappointing financial results for the fourth quarter and full year 2024, including a loss of $1.96 billion, or $55.66 per share, for the quarter, compared to a profit of $259 million, or $7.10 per share, for the same period in the prior year. Avis Budget attributed these results to “a change in strategy to significantly accelerate fleet rotations, which resulted in shortening the useful life of the majority of our vehicles in the Americas segment[,]” causing “a one-time non-cash impairment of $2.3 billion and other non-cash related charges of $180 million.” The press release also announced that the Company's CEO would be stepping down and the Company's Chief Transformation Officer would be taking over the role. On this news, Avis Budget's stock price fell $6.12 per share, or almost 7%, to close at $83.59 per share on February 11, 2025.
What Now: You may be eligible to participate in the class action against Avis Budget Group, Inc. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by June 24, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.
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Contact:
Aaron Dumas, Jr.
Robbins LLP
5060 Shoreham Pl., Ste. 300
San Diego, CA 92122
adumas@robbinsllp.com
(800) 350-6003
www.robbinsllp.com
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