Overview

A class action lawsuit has been filed against Avis Budget Group, Inc. (“Avis Budget” or the “Company”) and certain of the Company’s senior executives alleging violations of the federal securities laws. The Company’s common stock trades in an efficient market on the Nasdaq Global Select Market (“NASDAQ”) under the ticker symbol “CAR.”

The Avis Budget class action lawsuit was brought on behalf of all persons and entities who purchased or otherwise acquired Avis Budget securities between February 16, 2024, and February 10, 2025, both dates inclusive (the “Class Period”).

Avis Budget, together with its subsidiaries, provides car and truck rentals, car sharing, and related services to consumers and businesses across the Americas, Europe, the Middle East, Africa, Asia, and Australasia. Its operations include well-known brands such as Avis, which provides high-quality vehicle rental and other mobility solutions and targets the premium commercial and leisure segments of the travel industry; Budget, which supplies vehicle rental and other mobility solutions and focuses on value-conscious customers; and Zipcar, a global car sharing network providing self-service vehicles available by the hour or day. As of 2024, the Company reported a global rental fleet of approximately 695,000 vehicles.

With such a large fleet, effective fleet management is a central factor in Avis Budget’s profitability. A key aspect of this management is fleet rotation, the process of replacing aging vehicles with newer models at appropriate intervals. Rotating the fleet too slowly can result in increased maintenance expenses and reduced residual value, while rotating too quickly may lead to the early retirement of vehicles that still hold significant recoverable value.

The Company has publicly stated that successful fleet management depends on how vehicles are acquired, integrated into operations, and retired at the appropriate time and location. Avis Budget has also emphasized that properly rotating vehicles help maintain an optimal age and mileage level across the fleet, which supports operational efficiency, cost control, and customer satisfaction. The Company has consistently asserted that its practices in this area have been effective.

In the years following the COVID-19 pandemic, Avis Budget noted that supply shortages had led to higher-than-usual vehicle acquisition costs. To address this, the Company explained that it slowed its fleet rotation strategy by holding on to vehicles for longer periods, which it claimed allowed it to better manage depreciation and capital returns. During the fourth quarter of 2024, however, vehicle prices for model year 2025 began returning to more normalized levels. In response to these changing market conditions, Avis Budget implemented a strategy shift to significantly accelerate its fleet rotation. According to the Company, this adjustment was intended to improve predictability in fleet costs and support long-term growth heading into 2025.

The Avis Budget class action lawsuit alleges that throughout the Class Period, the Company and its senior executives made materially false and misleading statements regarding its business operations and financial outlook. Specifically, the lawsuit claims that: (1) Avis Budget had adopted and begun executing a plan to accelerate fleet rotation in the fourth quarter of 2024; (2) this change substantially shortened the useful life of a majority of the vehicles in its Americas fleet, thereby reducing their recoverable value; (3) the resulting impairment in vehicle value required the Company to recognize billions of dollars in charges and absorb significant financial losses; (4) these developments had a materially adverse impact on the Company’s financial performance; (5) the Company’s business prospects were overstated; and (6) the public statements made by Defendants were materially false and misleading during the relevant time period.

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If you purchased or otherwise acquired Avis Budget securities between February 16, 2024, and February 10, 2025, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as lead plaintiff in the Avis Budget class action lawsuit is June 24, 2025.