Skip to main content

Avis Budget Nears Dismissal of Shareholder Derivative Lawsuits

Tipranks - Sat Feb 28, 4:20PM CST

Claim 50% Off TipRanks Premium

Avis Budget ( (CAR) ) just unveiled an update.

Avis Budget Group, Inc., a major player in the global vehicle rental and mobility services market, was the nominal defendant in two shareholder derivative lawsuits filed in the U.S. District Court for the District of New Jersey in 2025. These suits targeted certain current and former officers and directors and stemmed from Avis’s February 2025 announcement that it was accelerating fleet rotation and recording a non-cash impairment for the fourth quarter of 2024.

On October 22, 2025, the plaintiffs in these derivative actions moved to voluntarily dismiss their cases, and on November 24, 2025, the court ordered that Avis shareholders receive notice and an opportunity to intervene before any dismissal. If no shareholder moves to intervene by April 13, 2026, the Jones and Dua derivative actions will be dismissed without prejudice, easing immediate litigation pressure on Avis while preserving the possibility of similar claims being refiled in the future.

The most recent analyst rating on (CAR) stock is a Buy with a $128.00 price target. To see the full list of analyst forecasts on Avis Budget stock, see the CAR Stock Forecast page.

Spark’s Take on CAR Stock

According to Spark, TipRanks’ AI Analyst, CAR is a Neutral.

The score is held down primarily by weak financial performance (losses, sharp 2025 revenue decline, and a structurally weak balance sheet with negative equity) and bearish technicals (price below key moving averages with negative MACD). Partially offsetting factors include resilient operating cash flow, a neutral-but-action-oriented earnings call with liquidity actions (tax-credit monetization), and a modestly positive fleet refinancing event.

To see Spark’s full report on CAR stock, click here.

More about Avis Budget

Avis Budget Group, Inc. operates in the global car and truck rental industry, providing vehicle rental and related mobility services to consumers and businesses under brands including Avis and Budget. The company focuses on serving both leisure and commercial travelers with short-term vehicle rentals and fleet management solutions across multiple markets.

Average Trading Volume: 651,970

Technical Sentiment Signal: Sell

Current Market Cap: $3.31B

For an in-depth examination of CAR stock, go to TipRanks’ Overview page.

Disclaimer & DisclosureReport an Issue

This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.
This section contains press releases and other materials from third parties (including paid content). The Globe and Mail has not reviewed this content. Please see disclaimer.