Hertz has faced a series of major lawsuits over the past several years, and the most consequential — a wave of false theft accusations against customers — was resolved in late 2022 with a settlement of roughly $168 million covering 364 of 367 identified claims. Other Hertz lawsuits remain active or recently resolved, including data breach class actions filed in 2025, a settled securities case over electric vehicle demand, a shareholder derivative dispute, a bankruptcy creditor fight the U.S. Supreme Court declined to hear, and a disability discrimination class action that received preliminary settlement approval in May 2026.
The False Theft Accusations and $168 Million Settlement
The largest legal exposure came from customers who were reported to police as car thieves despite having legitimately rented, extended, or already returned their vehicles. Lawsuits alleged that between 2016 and 2020, Hertz reported roughly 3,000 vehicles stolen per year, with many of those reports later shown to be erroneous.1Bailey Glasser. Rental Car Wrongful Arrest The failures traced back to Hertz’s internal systems: rental extensions weren’t properly recorded, vehicles were re-rented without rescinding earlier theft reports, and prosecutors weren’t notified after cars had been returned and paid for.2NPR. Hertz False Accusation Stealing Cars Settlement
The consequences for individual customers were severe. A Florida woman who had extended her rental four times, each confirmed by text with a Hertz employee, spent 37 days in jail and missed her nursing school graduation. A Mississippi customer who returned his vehicle and paid in full spent more than six months incarcerated because Hertz never told prosecutors.3CapRadio. Hertz False Accusation Stealing Cars Settlement Another claimant, Kelly Grady, spent 12 days in jail and was later awarded $100,000.46abc. Hertz Rental Car Lawsuit Investigation
Hertz CEO Stephen Scherr acknowledged in April 2022 that “several hundred people” had been affected.5ABC7. Hertz Car Rental False Arrests Lawsuit In December 2022, the company agreed to pay approximately $168 million to settle 364 of the 367 pending claims, covering more than 95 percent of identified cases.6New York Times. Hertz Theft Settlement Hertz said it expected to recover a “meaningful portion” of the payout through its insurance carriers.7ABC7 News. Hertz Rental Car Lawsuit Class Action
From Bankruptcy Court to State Court
The path to that settlement ran through Hertz’s 2020 Chapter 11 filing. Many of the claims were initially handled in Delaware bankruptcy court through a court-approved mediation process that resolved 17 of 18 identified class actions. More than $171 million in disputed class claims were withdrawn and expunged in exchange for modified claims totaling roughly $7.1 million against specific Hertz entities.8ClassAction.org. Kemal v. The Hertz Corporation Settlement
The picture shifted in June 2022, when U.S. Bankruptcy Judge Mary Walrath ruled that more than 70 customers could pursue their false arrest claims outside of bankruptcy court.9Orange County Register. Hertz False Arrest Claimants File New Suit Expanding Dispute That opened Delaware state court, where claimants could seek punitive damages and jury trials, and pushed Hertz toward the global settlement that followed months later.
Insurance Recovery Litigation
Hertz’s attempt to recoup those settlement costs from its insurers turned into its own fight. The company sued ACE American Insurance Company and other carriers in Delaware Superior Court, arguing that the systemic nature of its corporate failures meant the false arrests should count as a single “occurrence” that would let Hertz aggregate claims and exceed its $10 million per-occurrence self-insured retention.10Hertz Global Holdings SEC Filing. Legal Proceedings
The court rejected that theory on October 9, 2024, ruling that each individual false arrest was a separate “covered offense” under the policy language, carrying its own deductible. Because most individual settlements fell below the retention limit, Hertz’s ability to tap coverage was sharply limited.11Justia. Hertz Global Holdings v. ACE American Insurance Co. Hertz had already reached a confidential settlement with ACE American in June 2023 and entered additional confidential agreements with other insurers; the total recovered has not been publicly disclosed.10Hertz Global Holdings SEC Filing. Legal Proceedings
The 2025 Data Breach Class Actions
In April 2025, Hertz began notifying customers that hackers had accessed sensitive personal information by exploiting vulnerabilities in file-transfer software from the vendor Cleo Communications. The Clop ransomware group claimed responsibility for attacks in October and December 2024. Hertz learned of the breach on February 10, 2025.12Cybersecurity Dive. Hertz Data Breach Cleo
Exposed data included names, contact information, dates of birth, credit card details, driver’s license numbers, and workers’ compensation claims. For some individuals, Social Security numbers, passport information, government-issued IDs, and injury records from vehicle accident claims were also compromised.13Infosecurity Magazine. Hertz Data Breach Exposes Customer Information More than 100,000 people were affected, including 96,665 in Texas and 3,409 in Maine.14The Record. Hertz Data Breach Notifications Cleo Vulnerability Hertz offered two years of free identity protection through Kroll and said its own internal network was not compromised.12Cybersecurity Dive. Hertz Data Breach Cleo
Several class actions followed. Camplese v. Hertz, filed in the Middle District of Florida, alleges negligence, unjust enrichment, and breach of implied contract, seeking damages above $5 million. Crawford v. Hertz adds California Consumer Privacy Act claims and seeks both a national class and a California subclass. Jonte v. Hertz, filed in the Northern District of Illinois, originally named both Hertz and Cleo before Cleo was dropped from an amended complaint.15News-Press. Hertz Faces Class Action Lawsuits Over Customer Personal Information Exposed As of mid-2026, all of these cases remain in preliminary stages, with none reaching class certification or judgment.
Securities Class Action Over Electric Vehicle Claims
Doller v. Hertz Global Holdings, Inc. (No. 2:24-CV-00513, M.D. Fla.), filed on May 31, 2024, alleges that Hertz made materially misleading statements about consumer demand for its electric vehicle fleet. The company had invested heavily in EVs and later took roughly a $200 million earnings hit while trying to sell them off.16Law360. Doller v. Hertz Global Holdings Robert Stephens was appointed lead plaintiff in August 2024, with Levi & Korsinsky, LLP as lead counsel.17CourtListener. Doller v. Hertz Global Holdings Inc. The parties reached a $10 million settlement, and a Florida federal judge certified the investor class.
Shareholder Derivative Suit Over 2021–2022 Share Repurchases
Cascia v. Farmer, filed in the Delaware Court of Chancery, alleges that Hertz executives and directors breached their fiduciary duties through a share repurchase program in 2021 and 2022. On June 20, 2024, the court dismissed certain claims and allowed others to proceed. A Special Litigation Committee was formed on August 26, 2024, and proceedings were stayed.10Hertz Global Holdings SEC Filing. Legal Proceedings
The committee issued its report on April 25, 2025, concluding that pursuing the derivative claims would not be in the best interests of Hertz or its stockholders. In November 2025, the parties filed a stipulation of settlement calling for dismissal with prejudice. The proposed settlement is non-monetary and centers on governance changes, including an amendment to a voting agreement between Hertz and CK Amarillo prohibiting certain actions by written consent in lieu of a stockholder meeting.18Hertz Stockholder Derivative Settlement. Notice of Pendency and Proposed Settlement A final settlement hearing was scheduled for June 3, 2026, in the Delaware Chancery Court.19Yahoo Finance. Hertz Governance-Focused Settlement
Bankruptcy Make-Whole Premium Dispute
A dispute with noteholders trailed Hertz out of its 2021 Chapter 11 exit. In Wells Fargo Bank, N.A. v. The Hertz Corp., the Third Circuit ruled 2-1 that Hertz had to pay make-whole premiums and contractual post-petition interest to creditors before equity holders could keep their recovery, because the company was solvent and had already distributed roughly $1.1 billion to stockholders. Hertz had accrued about $320 million for these obligations, consisting of $260 million in claims and $60 million in interest.10Hertz Global Holdings SEC Filing. Legal Proceedings
Hertz petitioned the U.S. Supreme Court for review. On January 12, 2026, the Court denied certiorari in Hertz Corp. v. Wells Fargo Bank, N.A. (No. 24-1062), making the Third Circuit ruling final and leaving in place precedent on make-whole premiums and the absolute priority rule when a bankrupt company is solvent enough to repay all creditors.20Nelson Mullins. Hertz After Cert Denial Make-Wholes Solvent Debtors
Disability Discrimination Class Action
On February 20, 2024, disability rights advocates filed Ho v. The Hertz Corporation (Case No. 3:24-CV-01066-MMC) in the Northern District of California, alleging that the company violated the Americans with Disabilities Act by drastically reducing the models and types of vehicles available to customers who need hand controls.21Disability Rights Advocates. Ho v. The Hertz Corporation The proposed class includes all potential Hertz customers with disabilities who need hand controls to operate a rental vehicle. Specific allegations included limiting hand controls to a restricted set of vehicles, effectively imposing a surcharge on customers who require them, and imposing a more burdensome reservation process.22Disability Rights Advocates. Ho v. Hertz Class Notice
On May 1, 2026, the court granted preliminary approval of a class action settlement. The lawsuit does not seek monetary damages for class members; the settlement focuses on changes to Hertz’s vehicle accessibility practices.22Disability Rights Advocates. Ho v. Hertz Class Notice