FDD Items 3 & 4 · 2026 filing

Hertz litigation history

What Hertz disclosed about lawsuits, arbitrations and bankruptcy in the 2026 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.

Items 3 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed: 30; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: None stated

Bankruptcy (Item 4): Disclosed; Franchisor, parent, predecessor or officer

Filing year: 2026; Disclosures cover the prior ten years

Extracted from the 2026 Franchise Disclosure Document

Item 3: litigation

No pending or prior actions directly against Hertz System, Inc. as franchisor. Numerous cases involving parent The Hertz Corporation and affiliates, including class action settlements, franchise termination disputes, international subfranchisee trademark actions, and post-bankruptcy litigation. Largest settlement was $20 million (Moretti v. Hertz). Company emerged from Chapter 11 bankruptcy June 30, 2021.

Item 3 (litigation) · 30 matters disclosed · 8 pending listed

Litigation cases

The franchisor

Pending (2)

Car Rental Systems do Brasil Locacao de Veiculos Ltda. and Hertz System, Inc. v. Pimentel & Pimenta Ltda.
pending
Brought by the franchisor · 8th Civil Court of the Santo Amaro District, Sao Paulo
“and Hertz System, Inc. v. Pimentel & Pimenta Ltda.”Page 32 of the 2026 FDD, Item 3
Outcome: “The matter is suspended while the prospect of a collection action remains pending. The situation remains unchanged.”
Localiza Car Rental Systems S.A. and Hertz System, Inc. v. Rovema Locadora de Veiculos Ltda.
pending
Brought by the franchisor · 4th Civil Court of the Santo Amaro District, Sao Paulo, and the Sao Paulo Court of Appeal
“Legal action was taken against a former Hertz subfranchisee in Brazil for the undue use of the HERTZ brand and name.”Page 32 of the 2026 FDD, Item 3
Outcome: “This appeal was rejected on February 18, 2026 and we are waiting to see if the former sub-franchisee seeks a motion for clarification”

Concluded (1)

Localiza Car Rental Systems S.A. and Hertz System, Inc. v. B Noronha Locadora de Veiculos Eireli
concluded
Brought by the franchisor · filed 2018-04-03 · 9th Civil Court of the Santo Amaro District, Sao Paulo · 1015655-62.2018.8.26.0002
“(Case No. 1015655-62.2018.8.26.0002)”Page 39 of the 2026 FDD, Item 3
Outcome: “This case was closed in January 2019.”

Parent, affiliates, master franchisor and subfranchisor

Pending (6)

More Automotive Products, Inc. v. Dollar Rent A Car, Inc.
pending
Brought by a franchisee · Dollar Rent A Car, Inc. · filed 2024 · federal court in Puerto Rico and the Middle District of Florida (both dismissed), then binding arbitration
“… On February 22, 2024, Dollar terminated its franchise relationship with More Automotive”Page 32 of the 2026 FDD, Item 3
Outcome: “In October, 2025, the plaintiff voluntarily dismissed the arbitration.”
Yunus Moolla, Imraan Moolla, SAFY Trust, Springs Car Wholesalers (Pty) Ltd and Hired by Black Woman v. Dollar Rent A Car Incorporated and Thrifty Rent-A-Car System Incorporated, Hertz International Ltd. and CFAO Mobility (Pty) Ltd
pending
Dollar Rent A Car, Inc., Thrifty Rent-A-Car System, Inc., Hertz International Ltd. and CFAO Mobility (Pty) Ltd · filed 2023 · High Court of South Africa · 2023/098485
“Yunus Moolla, Imraan Moolla, SAFY Trust, Springs Car Wholesalers (Pty) Ltd and Hired by Black Woman v. Dollar Rent A Car”Page 33 of the 2026 FDD, Item 3
Outcome: “the court issued an order by way of agreement to address the return of Dollar Rent A Car, Inc.”
Dollar Rent A Car Incorporated and Thrifty Rent-A-Car System Incorporated v. Yunus Moolla, Imraan Moolla, The Trustees Of Safy Trust and Springs Car Wholesalers (Pty) Ltd
pending
Brought by the franchisor · Dollar Rent A Car, Inc. and Thrifty Rent-A-Car System, Inc. (as plaintiffs) · filed 2022 · courts of South Africa
“Dollar Rent A Car Incorporated and Thrifty Rent-A-Car System Incorporated v. Yunus Moolla, Imraan Moolla, The Trustees Of Safy Trust and Springs Car Wholesalers (Pty) Ltd”Page 32 of the 2026 FDD, Item 3
Outcome: “The parties attempted to mediate the damages claim without success and the action proceedings claiming damages remains active in court.”
DRAC Systems Corporation v. Dollar Thrifty Automotive Group Canada Inc. and The Hertz Corporation
pending
Dollar Thrifty Automotive Group Canada Inc. and The Hertz Corporation · filed 2021 · Saskatchewan Provincial Court, Canada
“DRAC Systems Corporation v. Dollar Thrifty Automotive Group Canada Inc. and The Hertz Corporation.”Page 31 of the 2026 FDD, Item 3
Outcome: “The matter is currently pending in the Saskatchewan Provincial Court in Canada and remains active.”
Wells Fargo Bank, National Association, as Indenture Trustee v. The Hertz Corporation, et al.
pending
Brought by a third party · The Hertz Corporation and certain subsidiaries · filed 2021-07-01 · U.S. Bankruptcy Court for the District of Delaware, on appeal to the Third Circuit and the United States Supreme Court
“Wells Fargo Bank, National Association, as Indenture Trustee v. The Hertz Corporation, et al.”Page 31 of the 2026 FDD, Item 3
Outcome: “On January 27, 2026, Hertz paid approximately $346 million, which was the amount that was not disputed by the parties, including the interest through the date of payment.” (page 32)
Arquipelago Turismo S/A v. Car Rental Systems do Brasil Locacao de Veiculos Ltda.
pending
Brought by a franchisee · Car Rental Systems do Brasil Locacao de Veiculos Ltda. · filed 2017 · Sao Paulo Court of Appeals, on appeal to the Superior Court of Justice in Brasilia and the Federal Supreme Court
“Arquipelago, a former franchisee, filed suit against Car Rental seeking damages for the purported early termination of their franchise agreement.”Page 31 of the 2026 FDD, Item 3
Outcome: “On July 31, 2025, the State Court of Appeals reaffirmed its prior ruling. Car Rental appealed back to the Superior Court in October of 2025.”

Concluded (21)

Yunus Moolla, Imraan Moolla, and Springs Car Wholesalers (Pty) Ltd v. Dollar Rent A Car Incorporated and Thrifty Rent-A-Car System Incorporated and CFAO Mobility (Pty) Ltd
dismissed
Brought by a franchisee · Dollar Rent A Car, Inc., Thrifty Rent-A-Car System, Inc. and CFAO Mobility (Pty) Ltd (as respondents) · filed 2023 · High Court of South Africa · 2023-080290
“Yunus Moolla, Imraan Moolla, and Springs Car Wholesalers (Pty) Ltd v. Dollar Rent A Car Incorporated and Thrifty Rent-A-Car System Incorporated and CFAO Mobility (Pty) Ltd”Page 32 of the 2026 FDD, Item 3
Outcome: “This application is now closed, and Dollar Rent A Car, Inc. and Thrifty Rent-A-Car System, Inc. are in the process of recovering legal costs” (page 33)
In Re: Franchise No Poaching Provisions, State of Washington
concluded
Government or regulatory action · The Hertz Corporation · filed 2019-11-08 · Attorney General of the State of Washington · File No. 19-2-29646-1 SEA
“… (File No. 19-2-29646-1 SEA).”Page 40 of the 2026 FDD, Item 3
Outcome: “On November 8, 2019 The Hertz Corporation cooperated with the Attorney General of the State of Washington to submit an Order Approving an Entry of Assurance of Discontinuance”
Kathryne Anne Kurth v. The Hertz Corporation
settled
Brought by a third party · The Hertz Corporation · filed 2018-03-06 · Circuit Court of Cook County, Illinois, Chancery Division, then American Arbitration Association and the Northern District of Illinois · 2018-CH-02994
“… (Case No. 2018-CH-02994, Circuit Court of Cook County, Illinois, Chancery Division).”Page 38 of the 2026 FDD, Item 3
Outcome: “for a cash payment of $20,000 by Hertz, plaintiff agreed to dismiss with prejudice the Class Proof of Claim and the underlying putative class action.” (page 39)
Emy Johnston v. The Hertz Corporation, et. al.
settled
Brought by a third party · The Hertz Corporation · filed 2017-08-23 · United States District Court (California) · 2:17-CV-01966-JAM-EFB
“… (Case No. 2:17-CV-01966-JAM-EFB).”Page 39 of the 2026 FDD, Item 3
Outcome: “the Defendants reached an agreement to settle the case for $550,000.”
Mark Stich and Kristina Stich vs. The Hertz Corporation d/b/a Hertz Car Sales
settled
Brought by a third party · The Hertz Corporation d/b/a Hertz Car Sales · filed 2017 · Superior Court of the State of California, County of Santa Clara · 17CV305776
“… (Superior Court of the State of California, County of Santa Clara, Case No. 17CV305776)”Page 35 of the 2026 FDD, Item 3
Outcome: “The parties settled the claim for $17,500 on July 13, 2017.”
People of the State of California acting by and through San Francisco City Attorney Dennis J. Herrera v. The Hertz Corporation, American Traffic Solutions, Inc., ATS Processing Services, L.L.C., American Traffic Solutions Consolidated, L.L.C., and PlatePass, L.L.C.
settled
Government or regulatory action · The Hertz Corporation (with American Traffic Solutions entities and PlatePass, L.L.C.) · filed 2017-03-01 · Superior Court of the State of California, County of San Francisco · CGC-17-557336
“People of the State of California acting by and through San Francisco City Attorney Dennis J. Herrera v. The Hertz Corporation, American Traffic Solutions, Inc., ATS Processing Services, L.L.C., American Traffic Solutions Consolidated, L.L.C., and PlatePass, L.L.C.”Page 34 of the 2026 FDD, Item 3
Outcome: “This matter was closed in February 2019.” (page 35)
Vizant Technologies, LLC v. Hertz Global, Inc., The Hertz Corporation, Hertz Australia PTY Ltd., Hertz New Zealand, and Car Rental Systems Do Brasil
dismissed
Brought by a third party · Hertz Global, Inc., The Hertz Corporation, Hertz Australia PTY Ltd., Hertz New Zealand and Car Rental Systems Do Brasil · filed 2017-06-09 · Superior Court of the State of Washington, in and for the Court of Spokane · 17202265-3
“… (Case No. 17202265-3)”Page 36 of the 2026 FDD, Item 3
Outcome: “On April 16, 2019 Vizant voluntarily dismissed the action against Hertz.”
Anthony Oliver v. The Hertz Corporation and Citicorp USA, Inc.
settled
The Hertz Corporation and Citicorp USA, Inc. · filed 2016-04-28 · Superior Court of the State of Arizona in and for the County of Pima · C20161989
“… (Case No. C20161989) filed in the Superior Court of the State of Arizona in and for the County of Pima.”Page 34 of the 2026 FDD, Item 3
Outcome: “Hertz reached a settlement with Plaintiff on May 18, 2016 for $1,500.”
Rebecca Reilly v. The Hertz Corporation
settled
Brought by a third party · The Hertz Corporation · filed 2016 · Quincy District Court of the Commonwealth of Massachusetts · 16CV924
“… (Case No. 16CV924) filed in the Quincy District Court of the Commonwealth of Massachusetts.”Page 34 of the 2026 FDD, Item 3
Outcome: “Hertz reached a settlement with Plaintiff on November 1, 2016 for $3,000.00.”
The Hertz Corporation v. Art Shaban, individually, and d/b/a Westheimer Paint & Body, Inc.
dismissed
Brought by the franchisor · The Hertz Corporation · filed 2016 · Harris County, Texas County Civil Court and District Court
“The Hertz Corporation v. Art Shaban, individually, and d/b/a Westheimer Paint & Body, Inc.”Page 39 of the 2026 FDD, Item 3
Outcome: “On June 1, 2020, Hertz also filed a Notice of Suggestion of Bankruptcy, staying the case.”
Dawn Cooks, et al. v. The Hertz Corporation
settled
Brought by a third party · The Hertz Corporation · filed 2015-05-01 · United States District Court for the Southern District of Illinois (filed in the Circuit Court, St. Clair County, Illinois) · 3:15-cv-00652-NJR-PME
“… (Case No. 3:15-cv-00652-NJR-PME) was brought in the United States District Court for the Southern District of Illinois.”Page 36 of the 2026 FDD, Item 3
Outcome: “this matter was mediated on February 22, 2021 and the parties came to a tentative settlement” (page 37)
Jenhanco, Inc. v. The Hertz Corporation, et al.
dismissed
The Hertz Corporation, Dollar Rent A Car, Inc. and Dollar Thrifty Automotive Group, Inc. · filed 2015-04-23 · United States District Court of the Central District of California (removed from Superior Court of California, County of Los Angeles, Case No. BC579568) · 2:15-cv-04191-ODW
“… (Case No. 2:15-cv-04191-ODW) was brought in the United States District Court of the Central District of California.”Page 35 of the 2026 FDD, Item 3
Outcome: “On November 14, 2017 the case was dismissed with prejudice.”
Liberty Representacoes e Servicos Ltda. V. Car Rental Systems do Brasil Locacao de Veiculos Ltda.
settled
Car Rental Systems do Brasil Locacao de Veiculos Ltda. (Hertz Brazil) · filed 2015-12-18 · Ninth Civil and Work Related Court of the District of Manaus/AM, Brazil · 0643614-93.2015.8.04.001
“… (Case No. 0643614-93.2015.8.04.001)”Page 34 of the 2026 FDD, Item 3
Outcome: “In November 2016, the case was settled with the reacquisition by the franchisor entities of the Thrifty licensee”
Robert Spotswood v. The Hertz Corporation
dismissed
Brought by a third party · The Hertz Corporation · filed 2015-04-06 · United States District Court for the District of New Jersey, transferred to the District of Maryland · 2:15-cv-03518 (ES/MAH)
“… (Case No. 2:15-cv-03518 (ES/MAH)) was brought in the United States District Court for the District of New Jersey.”Page 35 of the 2026 FDD, Item 3
Outcome: “The case was dismissed by a Stipulation of Voluntary Dismissal of Action on February 28, 2019.” (page 36)
Daniel Margulis v. The Hertz Corporation
settled
Brought by a third party · The Hertz Corporation · filed 2014-02-25 · United States District Court for the District of New Jersey · 2:14-CV-01209-WJM-MF
“… (United States District Court for the District of New Jersey, Case No. Case No. 2:14-CV-01209-WJM-MF).”Page 37 of the 2026 FDD, Item 3
Outcome: “this matter was mediated on February 11, 2021, and the parties came into a tentative settlement wherein, for a cash payment of $150,000.00 by Hertz”
Elizabeth Patrick v. The Hertz Corporation
settled
Brought by a third party · The Hertz Corporation · filed 2013-08-19 · Circuit Court of Cook County, Illinois · 13CH19179
“… (Case No. 13CH19179) filed in the Circuit Court of Cook County, Illinois on August 19, 2013.”Page 33 of the 2026 FDD, Item 3
Outcome: “In January 2016, the parties entered into an agreement to settle the matter on a non-class basis, and Hertz agreed to pay Plaintiff $23,000.” (page 34)
Enrico Moretti v. The Hertz Corporation, et al.
settled
Brought by a third party · The Hertz Corporation, Hertz Global Holdings, Inc., Dollar Thrifty Automotive Group, Inc. and Hotwire, Inc. · filed 2013-05-24 · Superior Court of California, San Francisco, removed to the Northern District of California and transferred to the District of Delaware · CGC-13-531701, removed to 3:13-cv-02972-JSW
“… (Superior Court of California, San Francisco, Case No. CGC-13-531701).”Page 38 of the 2026 FDD, Item 3
Outcome: “on May 10, 2021, a term sheet was executed confirming a $20 million settlement in exchange for dismissal of the underlying putative class action and Class Proof of Claim.”
In Re: Hertz Global Holdings, Inc. Securities Litigation
settled
Brought by a third party · Hertz Global Holdings, Inc., with Mark Frissora and Elyse Douglas · filed 2013-11-20 · United States District Court for the District of New Jersey, appeals to the Third Circuit · 2:13-CV-07050-SRC-CLW
“… (United States District Court for the District of New Jersey, Case No. 2:13-CV-07050-SRC-CLW).”Page 37 of the 2026 FDD, Item 3
Outcome: “this matter was mediated on February 3, 2021, and the parties came to a tentative settlement wherein, for a $250,000 cash payment by Hertz” (page 38)
John Ellis, at al. v. Dollar Thrifty Automotive Group, et al.
settled
Brought by a third party · Dollar Thrifty Automotive Group, Inc. (DTG); claims against The Hertz Corporation dismissed by stipulation · filed 2013-12-18 · Circuit Court for the Thirteenth Judicial Circuit, Hillsborough County, Florida · 13-CA-015274
“… (Circuit Court for the Thirteenth Judicial Circuit, Hillsborough County, Florida, Case No. 13-CA-015274)”Page 36 of the 2026 FDD, Item 3
Outcome: “A low end settlement was effectuated in 2018 and 2019 with claimants receiving refunds totaling less than $4,000. The matter was closed in 2019.”
Federal Trade Commission. (File No. 8923190)
settled
Government or regulatory action · Dollar (Dollar Rent A Car) · filed 1991 · Federal Trade Commission · File No. 8923190
“… On December 18, 1991, Dollar signed an agreement which was filed with, and accepted by, the Federal Trade Commission on March 29, 1993.”Page 39 of the 2026 FDD, Item 3
Outcome: “The Order requires Dollar to disclose to customers the amount of all mandatory charges, not reasonably avoidable, in connection with any representation relating to the price of contemplated rentals.” (page 40)
Robert Abrams, et al., v. The Hertz Corporation
judgment
Brought by a third party · The Hertz Corporation · filed 1988-07-21 · Supreme Court of New York in and for the county of New York · Index No. 44481/88
“… (Index No. 44481/88) filed in the Supreme Court of New York in and for the county of New York on July 21, 1988.”Page 33 of the 2026 FDD, Item 3
Outcome: “the court entered a Final Consent Judgment, based upon a stipulation and consent of the parties”

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

Disclosed in the 2026 Franchise Disclosure Document

Item 4: bankruptcy

On May 22, 2020, Hertz System, Inc., The Hertz Corporation, and certain U.S. and Canadian affiliates filed for Chapter 11 bankruptcy (Case No. 20-11240 for Hertz System, Inc.) in the U.S. Bankruptcy Court for the District of Delaware. Emerged from bankruptcy June 30, 2021.

Disclosure signals that moved the score

How this shows up in the verdict

Extensive litigation including bankruptcy claims, consumer protection violations, deceptive advertising, and securities cases — reputational and legal exposure

The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.

Before you weigh a lawsuit

How to read Item 3

A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.

Questions worth asking current and former franchisees, using the contact list in Item 20:

Were you, or anyone you know in the system, party to a dispute with the franchisor?
Was it resolved by settlement, arbitration or a court, and on what terms?
Has the number of disputes gone up or down since you signed?

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