Avis Budget Group strikes $650 million settlement with Pentwater over stock-swing profits
Avis Budget Group has reached a $650 million cash settlement with hedge fund Pentwater Capital to resolve a lawsuit over profits from short-swing trades tied to volatile Avis shares earlier this year. Pentwater’s rapid buying and subsequent selling helped fuel a more than 300% rally in April before a crash, and Avis alleged the moves violated securities-law short-swing provisions. The settlement, subject to court approval, would recover gains and end the dispute, while analysts noted Pentwater’s influence on the stock’s float and volatility. Avis shares rose in after-hours trading on the news.