Avis Budget receives $650 million cash settlement in Section 16(b) lawsuit against Pentwater
CAR•Avis Budget Group received a $650 million cash settlement on Oct. 5, 2026, resolving its Section 16(b) lawsuit against Pentwater Capital Management and affiliates. The company will record the proceeds in fourth-quarter results and plans to use part of the cash to repay $350 million of notes due 2027.
1. Settlement proceeds
Avis Budget Group received the $650 million cash settlement on Oct. 5, 2026, resolving its Section 16(b) short-swing profits lawsuit. The settlement followed a June 19 agreement with Pentwater Capital Management and affiliates that has now been cleared by the court.
2. Use of cash
Avis Budget will record the proceeds in its fourth-quarter results. Part of the cash is slated to repay $350 million of outstanding 5.750% Senior Notes due 2027 before year-end.
