Hertz to pay $168M to customers wrongly accused of stealing its cars

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Hertz to pay $168M to customers wrongly accused of stealing its cars
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Hertz said it February it was working to fix a glitch in the company’s systems that led to the incidents.

In April, Hertz CEO Stephen Scherr, who took over the role in February, said that he was working to fix a Hertz Global Holdings said Monday that the settlement of 364 pending claims related to vehicle theft reporting would resolvemore than 95% of the pending theft reporting claims.

“As I have said since joining Hertz earlier this year, my intention is to lead a company that puts the customer first. In resolving these claims, we are holding ourselves to that objective,” Scherr said in a statement. Hertz anticipates recovering a “meaningful portion” of the settlement amount from its insurance carriers. The Estero, Fla.-based company doesn’t expect the resolution of the claims to have a material impact on its capital allocation plans for the balance of the year or for 2023.

Hertz filed for bankruptcy protection in 2020, as it struggled under heavy debt and a drop in travel caused by the pandemic. It operates Hertz, Dollar and Thrifty car-rental brands.

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