Avis Budget Group (CAR) Shares Soar 1.47% Amid Lawsuit

Avis Budget Group (CAR) shares rose to their highest level since May 2024 today, with an intraday gain of 1.47%.

The strategy of buying CAR shares after they reached a recent high and holding for 1 week resulted in a significant loss. The backtest reveals a 24.78% decline, indicating that this approach failed to produce favorable returns over the past 5 years. The negative performance suggests that this strategy may not be effective for investors looking to capitalize on short-term price movements.

The most significant factor influencing Avis Budget Group's (CAR) stock price change is the class action securities lawsuit filed against the company. The lawsuit alleges that between February 16, 2024, and February 10, 2025, Avis Budget Group made false and misleading statements by failing to disclose a plan to accelerate its fleet rotation. This omission led to significant negative financial consequences, including billions in impairment charges, which had a material negative impact on the company's financial results and prospects. The legal actions are ongoing as of May 28, 2025, with investors having an opportunity to lead or join the lawsuit.