Hertz will pay approximately US$168 million by the end of the year to settle most of the lawsuits brought against the car rental company by some customers who were wrongfully accused of stealing their rental cars. says.
In April, Hertz CEO Stephen Scherr, who took over the role in February, said he was working to fix a glitch in the company’s systems that caused the incident.
Hertz Global Holdings Inc. said Monday that the settlement of 364 pending claims related to vehicle theft reports will resolve more than 95% of its pending theft report claims.
“Since joining Hertz earlier this year, my intention has been to lead a company that puts the customer first. Mr Cher said in a statement.
Hertz expects to recover a “significant portion” of the settlement from the insurers. The Estero, Fla.-based company does not expect the settlement of the claims to have a material impact on its capital allocation plans for the rest of the year or 2023.
Hertz filed for bankruptcy protection in 2020. This was because we were struggling with high debt and reduced travel due to the pandemic. It operates the Hertz, Dollar and Thrifty car rental brands.