Hertz Data Breach Lawsuit vs. Class Action: What’s the Difference?

In early 2025, Hertz confirmed a massive data breach affecting millions of customers across its rental brands, including Hertz, Dollar, and Thrifty. Since then, lawsuits have begun to surface across the country, and affected consumers are now being asked to pay attention to their legal options.

If your data was exposed, you may have already received (or soon will receive) a legal notice regarding your rights to participate in either a lawsuit, a class action, or even mass arbitration. 

But what do these terms really mean, and how do they affect your potential recovery?

This guide breaks down the key differences, the ongoing cases, and what you should know before deciding how to protect your legal rights.
 

What Is Mass Arbitration?

Mass arbitration is a newer legal strategy that emerged in response to companies requiring arbitration clauses in customer agreements. 

Arbitration is a private dispute resolution process outside of court. When thousands of customers file arbitration claims simultaneously, it creates pressure on the company to settle, since they are required to pay significant filing fees for each case.

Benefits of mass arbitration include the potential for larger individual payouts compared to class actions and a quicker resolution in some cases. Mass arbitration can also keep claims from being diluted across millions of plaintiffs.

 

Where Have Hertz Data Breach Cases Been Filed?

Claims against Hertz have already been filed in Florida and Illinois, two key states where large groups of affected customers reside. Additional lawsuits may appear in other jurisdictions, but often these cases are consolidated to avoid duplication and inconsistency.

Depending on how the cases develop, they may be moved to federal court for consolidation into what’s known as multidistrict litigation (MDL). This helps streamline the process by having one judge oversee the pretrial proceedings.

Attorney Fees and Funding Models

For both mass arbitration cases, affected customers do not pay attorney fees upfront when working with Morgan & Morgan. Instead, our attorneys work on a contingency fee basis, meaning we only get paid if we secure a settlement or a successful verdict. Our motto is the Fee Is Free®, and you only pay if we win.

In mass arbitration, the attorneys may take a percentage of the award for each client.

Likely Timelines and Outcomes

Data breach lawsuits can take months to years to resolve. Whether the case is consolidated in federal court, whether Hertz chooses to settle or go to trial, and the complexity of proving negligence and damages are all factors that influence a lawsuit’s timeline.

While class actions usually take longer to reach a resolution, but often end in a settlement, mass arbitration may move faster, but the results vary by individual claim.

Legal Notices and Customer Options

If you were affected by the Hertz data breach, you may receive a legal notice by mail or email. This notice will outline whether the notice concerns a lawsuit or arbitration option and any deadlines to participate or opt out.

It is important to read these notices carefully. Choosing to participate in a mass arbitration case usually means you give up the right to bring an individual lawsuit or arbitration claim later.

Settlement vs. Trial

Most data breach cases, including high-profile ones against major corporations, end in a settlement before trial. This allows the company to avoid prolonged litigation and negative publicity, while consumers receive compensation and, often, free identity theft monitoring.

If a trial does occur, it can set important legal precedents and may result in larger awards for plaintiffs, but trials are riskier and less common.

Identity Monitoring and the Role of Legal Action

Many data breach settlements include free credit monitoring or identity protection services for affected customers, and these benefits are often part of the resolution. However, additional monetary damages may only be available through direct participation in legal action.

Why Consult a Data Breach Lawyer?

Every affected customer’s situation is different. A data breach lawyer at Morgan & Morgan can help you:

• Understand your eligibility
• Ensure you don’t miss important deadlines
• Maximize your potential compensation

At Morgan & Morgan, we represent victims of data breaches nationwide and can help you navigate these complex options.

How can I find which one to participate in?

You’ll typically receive a notice by mail or email if you are part of a data breach. 

Will I be notified if I’m eligible?

Yes. Companies are legally required to notify affected customers if their data was compromised.

How long will legal resolution take?

It varies. Class actions can take years to settle, while arbitration may be resolved in months. Settlement negotiations can shorten the process significantly.

If you received a notice or believe your information was exposed in the Hertz data breach, it’s important to act quickly. Consulting a data breach lawyer can help you understand your options and protect your rights.

At Morgan & Morgan, we fight For the People, not the powerful. If your personal data was compromised in the Hertz breach, contact us today for a free case evaluation to learn more about your legal options and whether a mass arbitration lawsuit is right for you.