Hertz claims it would resolve the majority of the cases filed against it by some of its customers who were falsely accused of stealing cars they had rented by paying about $168 million by the end of the year.
Hertz CEO Stephen Scherr, who assumed the position in February, stated in April that he was trying to address a bug in the organization’s systems that caused the events.
More than 95% of the pending theft reporting claims will be resolved, according to Hertz Global Holdings Inc., which announced the settlement of 364 pending claims on Monday.
“As I have stated since beginning my tenure at Hertz in January this year, my goal is to steer a business that prioritizes its clients. We are holding ourselves to that goal as we respond to these claims,” Scherr said in a statement.
Hertz expects its insurance companies to recoup a “significant share” of the settlement sum.
The Estero, Florida-based company does not anticipate that the claims’ resolution will materially affect its capital budgeting strategies for the remainder of the year or 2023.
In 2020, Hertz sought bankruptcy protection as the company battled with significant debt and a decline in travel due to the pandemic.
It manages the Hertz, Dollar, and Thrifty rental car companies.