SHAREHOLDER REMINDER: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Avis Budget Group
3 minute readPublished: Saturday, May 31, 2025 at 12:50 pm
Avis Budget Group Investors Urged to Contact Law Firm Regarding Potential Securities Law Violations
Investors who purchased Avis Budget Group (NASDAQ: CAR) stock between February 16, 2024, and February 10, 2025, are being urged to contact the law firm Faruqi & Faruqi, LLP. The firm is investigating potential claims against Avis Budget Group, alleging the company and its executives violated federal securities laws.
The investigation centers around claims that Avis Budget Group made false and misleading statements, and/or failed to disclose crucial information to investors. Specifically, the complaint alleges the company implemented a plan to accelerate its fleet rotation in the fourth quarter of 2024. This action allegedly shortened the lifespan of the company's vehicles, particularly in the Americas segment, leading to a reduction in their recoverable value.
As a result, the company was forced to recognize billions of dollars in impairment charges, resulting in substantial losses. On February 11, 2025, Avis Budget reported a loss of $1.96 billion for the fourth quarter of 2024, a significant drop compared to the profit of $259 million in the same period the previous year. The company attributed the loss to the accelerated fleet rotation strategy. This news caused Avis Budget's stock price to fall by 6.82% on February 11, 2025.
Faruqi & Faruqi is reminding investors of the June 24, 2025, deadline to seek the role of lead plaintiff in a federal securities class action. Investors who suffered losses during the specified period are encouraged to contact Faruqi & Faruqi partner Josh Wilson directly to discuss their legal options. The firm also encourages anyone with information regarding Avis's conduct, including former employees and whistleblowers, to come forward.
BNN's Perspective: This situation highlights the importance of transparency and accurate financial reporting in the stock market. While fleet management strategies are common in the rental car industry, the allegations of misleading investors regarding the impact of these strategies are serious. Investors should carefully consider their options and consult with legal counsel if they believe they have been affected.
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