As of early 2026, the major chapter of the Hertz "false arrest" litigation has largely concluded following a landmark $168 million settlement reached in late 2022. This settlement was designed to resolve 364 pending claims from customers who were falsely accused of stealing rental cars, which in many cases led to traumatizing police encounters, arrests at gunpoint, and significant jail time. The issue stemmed from systemic glitches in Hertz's inventory management and a policy of reporting vehicles as stolen even when customers had called to extend their rentals or had already returned them. While that specific mass settlement covered more than 95% of the claims at the time, sporadic individual lawsuits continue to emerge in 2025 and 2026 from newer incidents or those who opted out of the original class action. Hertz’s leadership, including CEO Stephen Scherr, has publicly committed to "putting the customer first" to rebuild trust, implementing new technology to ensure rental extensions are immediately reflected in their systems to prevent future police involvement.