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Hertz to pay $168 million to settle over 95% of wrongful theft report claims
Global Banking & Finance Review®
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(Reuters) – Hertz Global Holdings Inc said on Monday it will pay about $168 million by year-end to resolve over 95% of pending claims from owners who alleged the car rental giant filed wrongful theft reports.
(Reuters) – Hertz Global Holdings Inc said on Monday it will pay about $168 million by year-end to resolve over 95% of pending claims from owners who alleged the car rental giant filed wrongful theft reports.
Some customers had sued Hertz alleging the police detained or arrested individuals in error after the company reported rental cars were stolen.
Hertz, which operates Hertz, Dollar and Thrifty vehicle rental brands, said it will recover a “meaningful” portion of the settlement amount from its insurers. The settlement resolves 364 pending claims from car owners.
Hertz said it does not expect the resolution of these claims to have a material impact on its capital return plans for this and next year.
The company in October reported a 12% jump in third-quarter revenue, amid strong demand for rental cars. Profit, however, rose just 1% on elevated maintenance costs.
(Reporting by Priyamvada C in Bengaluru; Editing by Krishna Chandra Eluri)
A wrongful theft report occurs when a company incorrectly reports a vehicle as stolen, leading to wrongful detainment or arrest of individuals.
Pending claims are unresolved requests for compensation or payment that have been submitted but not yet settled.
Capital return refers to the distribution of profits or funds back to investors or shareholders, often in the form of dividends or share buybacks.
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