LOS ANGELES–(BUSINESS WIRE)–$STOCKS—The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Avis Budget Group, Inc. (“Avis” or the “Company”) (NASDAQ: CAR) securities between February 16, 2024 and February 10, 2025, inclusive (the “Class Period”). Avis investors have until June 24, 2025 to file a lead plaintiff motion.
IF YOU SUFFERED A LOSS ON YOUR AVIS BUDGET GROUP, INC. (CAR) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.
You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at [email protected], by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.com.
What Happened?
On February 11, 2025, Avis released its fourth quarter and full year 2024 financial results, reporting 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 due 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.” Additionally, the Company disclosed that its Chief Executive Officer would “transition from CEO to Board Advisor.”
On this news, Avis’s stock price fell $6.12, or 6.8%, to close at $83.59 per share on February 12, 2025, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Avis crafted and implemented a plan to significantly accelerate its fleet rotation in the fourth quarter of 2024; (2) the foregoing acceleration shortened the useful life of the majority of the Company’s vehicles in the Americas segment, thereby reducing their recoverable value; (3) as a result, Avis would be forced to recognize billions of dollars in impairment charges and incur substantial losses; (4) all the foregoing was likely to, and did, have a significant negative impact on the Company’s financial results; (5) accordingly, Avis’s financial and/or business prospects were overstated; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you purchased Avis securities, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: www.frankcruzlaw.com
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Contacts
Law Offices of Frank R. Cruz
Frank R. Cruz
310-914-5007
[email protected]
Visit our website at: www.frankcruzlaw.com
