WASHINGTON (dpa-AFX) - Tuesday, Avis Budget Group, Inc. (CAR) stated that it has filed a motion in the United States District Court for the Southern District of New York, seeking approval for a settlement agreement between the company and Pentwater Capital Management LP.
As per the terms of the agreement, Pentwater will pay $650 million in cash to Avis, representing a fair resolution.
With this settlement, the company intends to resolve litigation filed against Pentwater and certain affiliated persons, seeking recovery of short swing profits.
In the pre-market hours, CAR is trading at $162.55, up 1.90 percent on the Nasdaq.
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