Budget Rent A Car litigation history

The franchisor and its predecessor

Concluded (8)

• Faiz Ahmed, d/b/a Premium Autos, LLC and Ahsan Syed, d/b/a ARS, Inc. v. Avis Rent A Car System, Inc., a Delaware Corporation, Budget Rent A Car System, Inc., a Delaware Corporation, Avis Budget Group, Inc., a Delaware Corporation and DOES 1-100, Inclusive

  settled

  filed 2013-12-31 · Superior Court for the State of California for the District of Rancho Cucamonga, County of San Bernardino · CIVRS 1308871

  “On December 31, 2013, plaintiffs, agency operators of Avis and Budget, filed a complaint against Avis, Budget, and ABG, seeking relief under California’s wage and hour laws to remedy the alleged misclassification of agency operators as independent contractors rather than classifying each of the Plaintiffs as employees.”Page 13 of the 2024 FDD, Item 3

  Outcome: “The parties entered into settlement agreements in December 2018 where a total settlement of $1,758,000 (Ahmed: $500,000, Syed: $500,000, Huseinbhai: $250,000, and Sansone: $250,000) was paid to the trust account of LA Superlawyers, Inc. on behalf of each of the plaintiffs.”

• Herbert Johnson v. Budget Rent A Car System, Inc.

  settled

  filed 2013-08-06 · Cook County Circuit Court, State of Illinois · 13-CH-18361

  “… (Cook County Circuit Court, State of Illinois, Case No. 13-CH-18361). On August 6, 2013, Plaintiff filed a purported class action lawsuit alleging violations of the Illinois Consumer Fraud Act and Illinois Vehicle Code for charges and collection of State Sales tax imposed on airport customer facility charges.”Page 14 of the 2024 FDD, Item 3

• Venerus v. Avis Budget Car Rental, LLC et al.

  settled

  filed 2013-06-12 · United States District Court for the Middle District of Florida · 13-CV-921

  “… (United States District Court for the Middle District of Florida, Case No. 13-CV-921). On June 12, 2013, plaintiff Heather Venerus, a renter of a Budget vehicle, filed a purported class action lawsuit against ABCR and Budget.”Page 14 of the 2024 FDD, Item 3

  Outcome: “ABCR and Budget agreed to make a total of up to $33,956,613.00 available for settlement of all claims in this matter.”

• Daniel Klein and Stephanie Klein, on behalf of themselves and others similarly situated v. Budget Rent A Car System, Inc. and Avis Budget Car Rental, LLC

  settled

  Brought by a third party · filed 2012-11-27 · United States District Court for the District of New Jersey · 2:12-CV-07300-JLL-MAH

  “On November 27, 2012, Plaintiffs Daniel Klein and Stephanie Klein, participants in Budget’s travel rewards program (“Travel Rewards Program”), filed a putative class action against ABCR and Budget, alleging a failure to adequately disclose to participants in the Travel Rewards Program that defendants impose a surcharge for frequent flyer miles earned through online rental transactions.”Page 15 of the 2024 FDD, Item 3

• Luigi Ambrose, et al. v. Avis Rent A Car System, Inc., Budget Rent A Car System, Inc., Avis Budget Group, Inc.

  settled

  filed 2011-10-14 · United States District Court for the Central District of California · 2:11-CV-09992-CAS-AGR

  “Luis Ambrose, and 17 other current and former agency operators of Avis or Budget, filed a complaint against Avis, Budget, and ABG. The case was filed in state court and subsequently removed to federal court. The complaint alleges, among other things, that Avis/Budget agency operators have been misclassified as independent contractors under California Law.”Page 16 of the 2024 FDD, Item 3

• Gregory Chase v. Budget

  dismissed

  filed 2010 · Second Judicial District Court for the State of New Mexico · CV-MO-08530

  “Under that program, Budget is a preferred rental car partner. Plaintiff alleges that a $0.75 per day charge for renters under Southwest’s program is a breach of contract as it is not disclosed and its charge and collection constitutes an unfair and deceptive trade practice. A stipulation of dismissal was filed on March 2, 2015.”Page 14 of the 2024 FDD, Item 3

• In the Matter of Budget Rent A Car System, Inc.

  concluded

  Government or regulatory action · Federal Trade Commission · Docket No. C-4212

  “… (Federal Trade Commission Docket No. C-4212). The Federal Trade Commission (“FTC”) undertook an investigation of Budget’s practices alleging that Budget engaged in unfair and deceptive practices related to fuel charges imposed upon renters who drive less than 75 miles.”Page 13 of the 2024 FDD, Item 3

• In the Matter of Budget Rent-A-Car Systems Inc.

  concluded

  Government or regulatory action · Budget Rent-A-Car Systems Inc. (BRAC, “Systems”), described as an affiliate of the Predecessor (Budget Rent A Car Corporation) · Federal Trade Commission · Docket No. C3674

  “On June 21, 1996, the FTC made final the Consent Order with BRAC, an affiliate of the Predecessor (“Systems”), which settled charges that Systems engaged in deceptive practices when failing to disclose potential charges to customers of “loss of turnback” values exceeding the cost of repairs, when those customers returned their cars with significant damage.”Page 14 of the 2024 FDD, Item 3

  Outcome: “The Consent Order required Systems to pay the FTC $75,000 for consumer redress.”

Parent, affiliates, master franchisor and subfranchisor

Pending (2)

• Abigail Bacon, Arcadia Lee, Jeannine Devries, Lisa Geary, Richard Alexander, Yvonne Wheeler and George Davidson and on behalf of themselves and the putative class v. Avis Budget Group, Inc. and Payless Car Rental, Inc.

  pending

  Avis Budget Group, Inc. (ABG, ultimate parent) and affiliate Payless Car Rental, Inc. · filed 2016-09-26 · United States District Court for the District of New Jersey · 2:16-cv-05939-KM-JBC

  “Plaintiffs filed this lawsuit on September 26, 2016 alleging that Payless has a pattern and practice of fraudulent counter sales including: 1) “add-on” sales—practice of adding coverages that were declined by customers; and 2) Fuel charges-customers were charged for fuel reserving services even though they returned the vehicle full.”Page 12 of the 2024 FDD, Item 3

• Dawn Valli vs. Avis Budget Group, Inc.

  pending

  Avis Budget Group, Inc. (ABG, ultimate parent) · filed 2014-09-30 · United States District Court, District of New Jersey · 2:2014-cv-06072-CCC-JBC

  “… (United States District Court, District of New Jersey, Case No. 2:2014-cv-06072-CCC-JBC ) On September 30, 2014, Plaintiff Dawn Valli filed an alleged class action suit for violation of the New Jersey Consumer Fraud Act, breach of good faith, and unjust enrichment arising from payment of speeding violation incurred in Washington DC and administrative fees.”Page 12 of the 2024 FDD, Item 3

Concluded (5)

• Kirit Bakshi v. ABCR Avis Budget Group, et als.

  settled

  Avis Budget Car Rental, LLC (ABCR, direct parent) / Avis Budget Group, Inc. (ABG) · filed 2020-02-18 · United States District Court for the Eastern District of Michigan · 2:20-cv-10419-DML-MJH

  “On February 18, 2020, Plaintiff filed a complaint alleging violations of the Michigan Consumer Protection Act, California Unfair Business Practices (Bus. & Prof. Code Section 17200) and the New Jersey Consumer Fraud Act. Plaintiff alleges ABG/Costco fraudulently, uniformly, routinely and systematically imposed unauthorized and/or specifically declined charges”Page 13 of the 2024 FDD, Item 3

  Outcome: “The parties settled this case on December 2, 2022 for $20,000 and the case was closed on December 14, 2022.”

• Canadian Competition Authority

  settled

  Government or regulatory action · Avis Budget Group, Inc. (ABG) and two of its Canadian subsidiaries · filed 2015 · Competition Tribunal (Canada)

  “… In March 2015, the Canadian Competition Bureau filed an application with the Competition Tribunal alleging that ABG and two of its Canadian subsidiaries engaged in deceptive marketing practices with regard to certain charges that consumers are invoiced related to renting a vehicle and associated products in Canada.”Page 15 of the 2024 FDD, Item 3

  Outcome: “The case was settled with ABG paying $3.25 million on June 2, 2016.”

• J&J Marshall, Inc., a California corporation v. Robert Koneti, individually, BVR Solutions, Inc., a California Corporation and Avis Budget Group, Inc., a Delaware corporation and DOES 1-40, inclusive

  settled

  Avis Budget Group, Inc. (ABG) · filed 2013 · Superior Court of the State of California for Ventura County · 56-2013004455653 CU-NP-VTA

  “On or about May 1, 2012, Plaintiff purchased the operating rights to the Budget Oxnard location from Defendants. On December 6 2013, plaintiff filed suit against Robert Koneti and BVR Solutions, and ABG, alleging that defendants made numerous intentionally false and damaging statements regarding the continued operation of the Budget Oxnard location.”Page 16 of the 2024 FDD, Item 3

  Outcome: “The case settled for $400,000.00 and was dismissed on December 22, 2015.”

• Faith Enterprises Group, Inc. on behalf of itself and all others similarly situated v. Avis Budget Group, Inc., Avis Budget Car Rental, LLC and Avis Rent A Car System, f/k/a Avis Rent A Car Systems, Inc.

  settled

  Brought by a third party · Avis Budget Group, Inc. (ABG), with Avis Budget Car Rental, LLC and affiliate Avis Rent A Car System · filed 2011-09-19 · United States District Court for the Northern District of Georgia · 1:11-CV-3166

  “On September 19, 2011, plaintiff, an Avis agency operator, filed a complaint on behalf of itself and all others similarly situated. Plaintiff alleged, among other things, that: a) Avis listed agency operators locations as being “sold out” to divert business to nearby airports, b) Avis breached a duty to supply agency operators locations with sufficient vehicles for rental”Page 15 of the 2024 FDD, Item 3

• Jose Mendez v. Avis Budget Group and Highway Toll Administration

  settled

  Avis Budget Group, Inc. (ABG, ultimate parent) · filed 2011-11-07 · United States District Court for the District of New Jersey · 2:11-CV-06537

  “On November 7, 2011, Jose Mendez filed a putative nationwide class action lawsuit for breach of contract, unjust enrichment, and breach of the implied covenant of good faith for alleged failure to disclose E-Toll activations, fees, and charging non-discounted tolls.”Page 15 of the 2024 FDD, Item 3

  Outcome: “Avis Budget Group paid $6,700,000 in legal fees and $2,700,000 in settlement costs.”