Hertz Global Holdings Inc. announced Monday they would be paying out $168 million US by the end of the year to settle the majority of lawsuits brought against them by customers who were falsely accused of stealing rental cars.
CEO Stephen Scherr, who took over in February, had been working to fix the company’s glitch, which led to the incidents.
“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.
The company expects to recover a “meaningful portion” of the settlement from its insurance carriers.
The resolution of the claims won’t have a material impact on their capital allocation plans for the rest of the year or 2023.
Hertz, who filed for bankruptcy protection in 2020 due to the pandemic, operates the Hertz, Dollar, and Thrifty car rental brands.