Whatever Hertz did or didn't do to let this happen (albeit rarely) is their fault. So plaintiffs clearly have grounds to sue Hertz. Police departments were also affected, so they arguably also have standing.
But criminal charges? Maybe if people were getting killed over it. Otherwise it's just a civil matter.
Taking an action that deprives someone of their liberty for two weeks? Sounds criminal to me. Doesn't to you? As has been pointed out there are multiple failures including law enforcement.
But consider medical malpractice. Even when a surgeon screws up, and the patient is disabled for life, there are rarely criminal charges. And this is lots more indefinite than that. I mean, you're going to put some employee in jail because they screwed up paperwork?
Yes? Why the hell not, it's pretty obvious that such paperwork has life and death consequences (it's only a matter of time before a customer is shot during his arrest, because the cop "feared for his life").
We put people in jail for drinking too much when that leads to bad consequences, why not for sloppy paperwork that get someone falsely imprisoned or killed?
As does negligence. If I'm target shooting from my house to a target across a busy road, if I accidentally shoot someone, I'd expect to go to jail even if it was a simple mistake.
But criminal charges? Maybe if people were getting killed over it. Otherwise it's just a civil matter.
Edit: fat fingers