Avis Budget Group collects $650 million cash settlement
Avis Budget Group received a $650 million cash settlement from Pentwater Capital Management to resolve a short-swing profit lawsuit.
Key takeaways
- Avis Budget Group Inc. (CAR) received a $650 million cash settlement on Oct. 5, 2026, to resolve a short-swing profit lawsuit against Pentwater Capital Management. The company plans to use $350 million of the proceeds to repay senior notes due in 2027.
Avis Budget Group Inc. (CAR) received a settlement amount of $650 million in cash on Oct. 5, 2026, according to a regulatory filing.
The payment resolves the company lawsuit against Pentwater Capital Management LP and affiliated persons for the recovery of short-swing profits under Section 16(b) of the Securities Exchange Act of 1934.
The parties entered into the settlement and release agreement on June 19, 2026. The court approved the payment, and Avis Budget Group will recognize the funds in its fourth-quarter financial statements.
The company plans to use a portion of the proceeds to repay the remaining $350 million outstanding principal amount of its 5.750% Senior Notes due 2027 before the end of the year.