NEW YORK, April 29, 2025 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all persons or entities who purchased or otherwise acquired Avis Budget Group, Inc. (“Avis Budget” or the “Company”) (NASDAQ: CAR) securities between February 16, 2024 and February 10, 2025, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. The Complaint also alleges Defendants made false and/or misleading statements and/or 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; (v) accordingly, Avis Budget’s financial and/or business prospects were overstated; and (vi) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
According to the Complaint, on February 11, 2025, Avis Budget issued a press release reporting its financial results for the fourth quarter and full year 2024. The Complaint alleges that among other items, Avis Budget reported 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. The Complaint further alleges that 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.”
According to the Complaint, on this news Avis Budget’s stock price fell $6.12 per share, or 6.82%, to close at $83.59 per share on February 11, 2025.
Investors who purchased or otherwise acquired shares of Avis Budget should contact the Firm prior to the June 24, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
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