Hertz Equipment Rental can pay $76.5 million to settle claims that it overcharged customers for loss and damage waivers and fake environmental recovery fees, a federal judge ruled.
In a 2006 class action, Miguel Pro and Davis Landscape claimed that Hertz's loss and damage waiver provided illusory coverage for a premium price, and that its environmental recovery fee did not reflect any expenses actually related to protecting the environment.
With Carella Byrne, Complex Litigation Group LLC and Seeger Weiss serving as co-lead counsel, the parties reached a settlement in March 2013.
U.S. District Judge Dennis in Newark, NJ, quickly granted the deal preliminary approval and finalized the settlement on June 20.
Hertz has agreed to reimburse certain customers up to 75 percent - totaling up to $3 million - of loss and damage waiver deductibles that they paid for damaged rented equipment.
One-time or sporadic customers, on the other hand, may elect to receive either discounts on up to four future rentals - totaling half of all loss and damage waivers they purchased - or a cash payment of 15 percent of the total they paid for waivers.
Hertz agreed to pay about $65 million in economic relief to the class, plus $11.5 million in attorneys' fees, including $1.3 million in hard costs class counsel incurred.