Hertz Agrees to Pay Nearly $170 Million to Settle Hundreds of False Car Theft Claims

Hertz Global Holdings has agreed to pay $168 million to settle hundreds of false theft claims over stolen cars.

In a statement on Monday, Hertz CEO Stephen Scherr, who joined the company in February, said the rental car brand has settled 364 claims, which results in “resolution to more than 95%” of the total disputes.” 

Back in July, hundreds of Hertz customers filed a lawsuit in Delaware Superior Court, accusing the rental car company of systematic flaws in its reporting of thefts, including not recording rental extensions, falsely claiming customers haven’t paid, failing to track its own vehicle inventory and failing to correct false reports to police.

“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 on Monday.

“While we will not always be perfect, the professionals at Hertz will continue to work every day to provide best-in-class service to the tens of millions of people we serve each year. Moving forward, it is our intention to reshape the future of our company through electrification, shared mobility and a great digital-first customer experience.”

Despite filing for bankruptcy protection in 2020, Hertz claims it does not expect the settlements to have “a material impact on its capital allocation plans for the balance of 2022 and 2023.”

However, it’s worth noting that the company’s shares were down two percent during Monday trading.