Hertz has been ordered to pay $168 million to 364 customers who were incorrectly accused of stealing cars due to a glitch in the company's data system. CEO Stephen Scherr says that resolving these claims is an important matter as he transforms the company into one that puts customers first.
A large sum of the required payment will come from the company's insurance. The lawsuit was filed in September after numerous customers were pulled over for driving stolen cars despite them being paid for and ahead of their scheduled return date.
To make matters worse, Hertz contacted the police directly, resulting in some arrests with one customer being forced to spend an entire night in jail. Hertz is liable for acting negligently, causing emotional trauma, and initiating false arrests. 320 customers dating back to 2015 have been wrongfully cuffed but Hertz says 95% of the claims have been resolved.
Hertz has fallen on tough times having filed for Chapter 11 bankruptcy in 2020 to cover its massive debt further increased due to Covid lockdown measures. Looking forward, the company has embraced electrification by adding a fleet of Tesla Model 3s and ordering 65,000 units of the Polestar 2. The Chevy Bolt range will be available to rent early next year.
Speaking on the future of the historic car rental brand, Scherr says, "Moving forward, it is our intention to reshape the future of our company through electrification, shared mobility, and a great digital-first customer experience."