Hertz said it will pay about $168 million by the end of the year to settle most of the lawsuits brought against the rental car company by some of its customers who were wrongly accused of stealing their rental cars. lays
In April, Hertz CEO Stephen Scherr, who took over in February, said he was working to fix the problem. error in the company’s systems that led to the incidents.
Hertz Global Holdings said Monday that the resolution of 364 pending claims related to vehicle theft reporting will resolve more than 95% of the pending theft claims.
“As I’ve said since joining Hertz earlier this year, my goal is to run a company that puts the customer first. We are committed to that goal in resolving these claims,” Sherr said in a statement.
Hertz expects to recover a “substantial portion” of the settlement amount from insurance carriers. The Estero, Fla.-based company does not expect the settlement of the lawsuits to have a material impact on its balance sheet or capital distribution plans for 2023.
Hertz filed for bankruptcy protection in 2020 as it struggled with heavy debt and declining travel due to the pandemic. It works with rental car brands Hertz, Dollar and Thrifty.