Hertz to pay $168 million in bogus theft settlement

Date:

Share post:



Hertz says it will pay approximately $168 million by the end of the year to settle the majority of the lawsuits brought against the rental car company by some of its customers who were wrongly accused of stealing cars they had rented.

In April, Hertz CEO Stephen Scherr, who took over the role in February, said that he was working to fix a glitch in the company’s systems that led to the incidents.

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.



Source link

Related articles

White House worried over Janet Yellen’s fumbling of US bank crisis: sources

Janet Yellen is once again on thin ice inside the Biden Administration over her bungling of the...

Amazon workers fume after HR rejects petition against return-to-office

Disgruntled Amazon corporate employees are reportedly devastated after a top human resources executive shot down an internal...

Ex-Goldman banker Roger Ng must forfeit $35.1M in 1MDB case

A US judge on Friday ordered former Goldman Sachs banker Roger Ng to forfeit $35.1 million, after sentencing him to 10 years...

Fed President James Bullard expects rates as high as 5.75%

St. Louis Federal Reserve president James Bullard said Friday the US likely will need higher than expected interest...