Hertz’s $70 Million Suit Against Former Senior Managers Advances

Hertz Corp.‘s lawsuit seeking to claw back $70 million in incentive compensation from former senior managers involved in an accounting scandal got a boost Thursday, when a federal judge in New Jersey declined to dismiss some of the company’s claims.

Hertz accused former Chief Executive Officer Mark Frissora and former General Counsel John Zimmerman of pressuring employees to use fraudulent accounting methods to inflate the company’s income and earnings. This “gross negligence and misconduct” spurred a lengthy and costly investigation by the Securities and Exchange Commission, along with significant legal fees and damage to the business, Hertz said. ...