Avis Budget Settles Pentwater Short-Swing Suit for $650 Million as Court Approval Still Pending
Updated
Updated · Stocktwits · Jun 23
Avis Budget Settles Pentwater Short-Swing Suit for $650 Million as Court Approval Still Pending
3 articles · Updated · Stocktwits · Jun 23
Summary
$650 million in cash would go to Avis Budget under a June 19 settlement agreement with Pentwater, resolving the rental-car company's Section 16(b) lawsuit if a court signs off.
The court must still decide whether Avis actively pursued the claims and whether the amount is fair and reasonable before any payment is completed.
The dispute grew out of Avis's earlier stock whipsaw, when Pentwater built a large stake during a short squeeze, then sold millions of shares and triggered a sharp drop.
Avis shares rose 2% premarket after the filing and are up more than 45% this year, though some retail investors argued the payment does little against roughly $28 billion of debt.