Avis Budget Group, Inc. (NASDAQ: CAR) has filed a motion seeking court approval of a $650 million cash settlement with Pentwater Capital Management LP, resolving litigation over short-swing profits under Section 16(b) of the Securities Exchange Act of 1934.

Avis originally filed the lawsuit on June 16, 2026, in the United States District Court for the Southern District of New York (case no. 1:26-cv-05512-CM) against Pentwater and certain affiliated persons, seeking recovery of profits under the federal securities law provision that restricts short-term trading by corporate insiders.

Under the terms of the settlement, Pentwater will pay Avis $650,000,000 in cash. The agreement remains subject to court approval, which requires a finding that Avis diligently pursued its claims and that the settlement amount is fair, reasonable, and adequate. Both parties stated they consider the settlement to represent a fair resolution.