Del. Judge Delays Ch. 11 Ruling Over Hertz False Arrest Suits

Law360 (April 22, 2021, 7:38 PM EDT) -- A Delaware bankruptcy judge preliminarily denied a motion Thursday to lift a stay in The Hertz Corp.'s Chapter 11 to state or U.S. district court suits over the car rental giant's alleged practice of falsely reporting rented cars as stolen, leading to unjustified arrests.

But U.S. Bankruptcy Judge Mary F. Walrath also put off the final decision until August, after the expected confirmation of Hertz's plan, and said she was unprepared to say Thursday whether the alleged injuries to customers, which included wrongful jailings, even belong in bankruptcy court.

The unanswered questions remain among a diminishing number of shadows over Hertz's...

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