Avis seeks profit recovery from Pentwater Capital over short-swing trading rule

4 articles · Updated · The Wall Street Journal · Apr 29

Pentwater Capital agreed to hand over profits from 94,000 shares after selling part of its Avis stake during a dramatic short squeeze, with gross proceeds from last week’s sales estimated at $1.75 billion.
Avis CEO Brian Choi confirmed ongoing discussions with Pentwater and legal counsel regarding the amount owed, as the short-swing profit rule may require insiders to return profits from trades within six months.
The episode follows Avis shares soaring to $847.70 before plunging 68% in two days, with Pentwater’s remaining stake at 3.5 million shares and the stock still up 24% for the month.

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