Hertz is set to pay a total of $168 million as part of the settlement agreements in connection with allegations that the rental car company falsely reported customers of stolen vehicles, to me Monday press release.
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The settlements, which the company said will be paid by the end of the year, will be resolved More than 360 legal claims of customers who claim to have faced arrests due to reports of a stolen vehicle that the company allegedly mistakenly filed with the authorities. They point out that more than 95% of pending false arrest lawsuits reach decisions, according to Hertz Release.
Hertz has ordered 175,000 electric cars from General Motors through 2027
Hertz said the settlements, in which the company expects to “recover a significant portion” of its insurers, will likely not have a “material impact on capital allocation plans for the 2022 and 2023 budgets.”
“As I have said since joining Hertz earlier this year, I intend to lead a company that puts the customer first.” Chief Executive Officer Stephen Scheer he said in a statement. “In resolving these claims, we are committing ourselves to this goal.”
Scheer previously described “getting it right” as a “priority” in an interview with Bloomberg in early April.
HERTZ’s CEO plans to address the issue of the false arrests, and expects to settle with the victims
“We’ve put in place policies now that will mitigate, if not eliminate, the risks of this happening again,” he said at the time. “For a customer who wasn’t treated well, we’ll do it right.”
According to the Philadelphia Inquirer, reports of clients being falsely accused Rental car The theft first arose two years ago.
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Peter Aitken contributed to this report.
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