Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, June 18, 2025 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises Avis Budget Group, Inc. (“Avis” or the “Company”) (NASDAQ: CAR) investors of a class action representing investors that bought securities between February 16, 2024 and February 10, 2025, inclusive (the “Class Period”). Acadia Healthcare investors have until June 24, 2025 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The Avis Budget class action lawsuit alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that:
(i) Avis Budget developed and executed a plan to aggressively accelerate its fleet rotation during the fourth quarter of 2024;
(ii) this acceleration significantly shortened the useful life of most of Avis Budget’s vehicles in the Americas segment, reducing their recoverable value;
(iii) as a result, Avis Budget would be required to recognize billions of dollars in impairment charges and face substantial losses;
(iv) these issues were likely to, and ultimately did, have a significant negative impact on Avis Budget’s financial performance; and
(v) as a result, Avis Budget’s financial condition and business outlook were materially overstated.
The lawsuit further alleges that on February 11, 2025, Avis Budget reported its financial results for the fourth quarter and full year of 2024, disclosing a quarterly loss of $1.96 billion, or $55.66 per share, compared to a profit of $259 million, or $7.10 per share, for the same period the prior year. According to the complaint, Avis Budget attributed the loss 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,” leading to “a one-time non-cash impairment of $2.3 billion and other non-cash related charges of $180 million.”
The lawsuit also alleges that Avis Budget announced its Chief Executive Officer, defendant Joseph A. Ferraro, would step down and transition to a Board Advisor role effective June 30, 2025, with Brian Choi, the Company’s Chief Transformation Officer, set to assume the CEO position starting July 1, 2025. Following this news, Avis Budget’s stock price reportedly dropped nearly 7%.
Please visit our website to review more information and submit your transaction information.
The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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