Avis Fleet Strategy Stalls Out; Investors Sue

Avis Budget told investors they had the roadmap to long term profits with its fleet rotation plan. But after Avis admitted its plan hit a major bump, investors knew they'd just been taken for a ride. Shareholders dumped their stock and Avis crashed nearly 7% in just a day. Now, investors are taking legal action against the Company.

Avis Budget is the rental car giant behind brands like Avis, Budget, and Zipcar. In 2024, they told shareholders their strategy to rotate older vehicles out of the rental fleet was the road to profits and boosted efficiency.

But, according to the lawsuit, Avis misled investors by hiding risks and losses. Executives said everything was fine, but really the fleet's value was crashing fast.

The truth came out in February, when Avis revealed a massive impairment charge and huge loss for Fourth Quarter 2024.

Once investors heard this news dumped their shares and Avis' stock plummeted. Now, more investors are joining the lawsuit.