CAR INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Announces that Avis Budget Group, Inc. Investors with Substantial Losses Have Opportunity to Lead the Avis Budget Class Action Lawsuit

/EIN News/ -- SAN DIEGO, April 25, 2025 (GLOBE NEWSWIRE) -- Robbins Geller Rudman & Dowd LLP announces that the Avis Budget class action lawsuit seeks to represent purchasers or acquirers of Avis Budget Group, Inc. (NASDAQ: CAR) securities between February 16, 2024 and February 10, 2025, inclusive (the “Class Period”). Captioned Merriam v. Avis Budget Group, Inc., No. 25-cv-03332 (D.N.J.), the Avis Budget class action lawsuit charges Avis Budget and certain of Avis Budget’s top executives with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the Avis Budget class action lawsuit, please provide your information here:

https://www.rgrdlaw.com/cases-avis-budget-group-inc-class-action-lawsuit-car.html

You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com.

CASE ALLEGATIONS: Avis Budget provides car and truck rentals, car sharing, and ancillary products and services to businesses and consumers.

The Avis Budget class action lawsuit alleges that defendants throughout the Class Period 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 Avis Budget’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 above was likely to, and did, have a significant negative impact on Avis Budget’s financial results; and (v) accordingly, Avis Budget’s financial and/or business prospects were overstated.

The Avis Budget class action lawsuit further alleges that on February 11, 2025, Avis Budget reported financial results for the fourth quarter and full year 2024, disclosing 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. According to the complaint, 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 Avis Budget class action lawsuit further alleges that Avis Budget additionally revealed that Chief Executive Officer, defendant Joseph A. Ferraro, “will transition from CEO to Board Advisor, effective June 30, 2025” and that “Brian Choi, the Company’s Chief Transformation Officer, will take over as CEO, effective July 1, 2025.” On this news, the price of Avis Budget stock fell nearly 7%, according to the complaint.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Avis Budget securities during the Class Period to seek appointment as lead plaintiff in the Avis Budget class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Avis Budget class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Avis Budget class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Avis Budget class action lawsuit.

ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities fraud and shareholder litigation. Our Firm has been ranked #1 in the ISS Securities Class Action Services rankings for four out of the last five years for securing the most monetary relief for investors. In 2024, we recovered over $2.5 billion for investors in securities-related class action cases – more than the next five law firms combined, according to ISS. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:

https://www.rgrdlaw.com/services-litigation-securities-fraud.html

Past results do not guarantee future outcomes. 
Services may be performed by attorneys in any of our offices. 

Contact:
              Robbins Geller Rudman & Dowd LLP
              J.C. Sanchez, Jennifer N. Caringal
              655 W. Broadway, Suite 1900, San Diego, CA 92101
              800-449-4900
              info@rgrdlaw.com