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Hertz pays $168 million to wrongly arrested victims

Car rental company Hertz has settled a lawsuit in which hundreds of customers accused the company of falsely reporting their rental cars as stolen, leading to multiple arrests and even jail time for paying customers.

The company has agreed to pay out $168 million to the 364 victims named in the lawsuit by the end of 2022, noting that a “meaningful portion” of the money will be provided by insurance companies affiliated with Hertz .

Related: Nearly 50 people sued Hertz, claiming they were wrongly arrested for stealing cars

“As I have said since I joined Hertz earlier this year, my intention is to run a company that puts the customer first. As we resolve these claims, we are committed to that goal,” said Stephen Scherr, CEO of Hertz, in a business let go. “While we won’t always be perfect, the professionals at Hertz will continue to work every day to provide the best service to the tens of millions of people we serve each year. Going forward, our intention is to reshape the future of our business through electrification, shared mobility and a great digital-first customer experience.”

The company does not expect the payout to impact allocation plans for the rest of this year or 2023.

Hertz fell just under 38% in a one-year period on Tuesday afternoon.

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