Hagens Berman says it filed Verra Mobility securities class action over Avis disclosures
The law firm says the case centers on allegations that Verra Mobility misled investors about its Avis Budget Group relationship, then disclosed a contract loss and cut its outlook.
Hagens Berman Sobol Shapiro LLP said July 31 that it filed a securities fraud class action against Verra Mobility Corp. and expanded its investigation into the company after a leadership transition.
The firm said the case centers on allegations that Verra and certain executives made false or misleading statements about its relationship with Avis Budget Group and concealed facts that later appeared in company disclosures. The allegations have not been proven in court.
According to the notice, investors claim Verra downplayed the risk that major rental-car customers could replace its services with in-house or outsourced alternatives. The filing also says the company misrepresented the odds of renewing an Avis contract.
Hagens Berman says Verra later disclosed a sudden notice ending the Avis contract, cut its 2026 outlook, announced an operational restructuring and began an internal review of negotiations. The notice says Verra shares fell from $13.08 to $3.85 on May 27, a drop it says erased about $1.4 billion in market value.
The law firm said its expanded review also examines the June 1 departure of longtime chief executive David Roberts after a 12-year tenure. It said it is looking at whether the leadership change was tied to the loss of the Avis contract and the later disclosures.
The notice seeks lead plaintiffs for investors who bought or acquired Verra common stock between Feb. 24 and May 26, 2026, and says the deadline to ask the court to appoint a lead plaintiff is Aug. 4.
Hagens Berman identified partner Reed Kathrein as the lawyer leading the investigation. The notice also points investors to the SEC Whistleblower program and says original information may qualify for awards of up to 30% of any successful SEC recovery.
Verra Mobility was the subject of the notice; the company’s response was not included in the PR Newswire item. The firm’s allegations remain claims in a lawsuit and investigation notice.
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Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
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