Get All Access for $5/mo

Hertz To Pay $168 Million to Hundreds of Victims Who Claimed They Were Falsely Arrested While Driving Rental Cars Over the summer, over 300 customers claimed that the rental car company was falsely reporting their rented vehicles as stolen.

By Emily Rella

Opinions expressed by Entrepreneur contributors are their own.

Rental car 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 by the end of 2022 to the 364 victims listed on the lawsuit, noting that a "meaningful portion" of the money will be provided by insurance carriers associated with Hertz.

Related: Nearly 50 People Have Sued Hertz, Claiming They Were Falsely Arrested for Stealing Cars

"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," Stephen Scherr, CEO of Hertz, said in a company release. "While we will not always be perfect, the professionals at Hertz will continue to work every day to provide best-in-class service to the tens of millions of people we serve each year. Moving forward, it is our intention to reshape the future of our company through electrification, shared mobility and a great digital-first customer experience."

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

Hertz was down just shy of 38% in a one-year period as of Tuesday afternoon.

Emily Rella

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Science & Technology

Why Businesses Are Relying on Automation to Survive the Labor Crisis

Robots are revolutionizing industries by addressing labor shortages and enhancing efficiency, while businesses navigate challenges like workforce adaptation and high implementation costs.

Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Celebrity Entrepreneurs

The Pep Talk From Mickey Mouse We All Need to Hear, Compliments of Chris Diamantopoulos

Chris Diamantopoulos, the star of "The Sticky," "Red Notice" and the voice of Mickey Mouse, gets real about resilience, chasing dreams, and his desperate wish for a normal hobby.