$3 Million Settlement Reached in FCRA Class Action Lawsuit

 FCRAFTCGavel

Written By ESR News Blog Editor Thomas Ahearn

A settlement of $3 million was reached in class action lawsuit between a group of job applicants and east coast grocery store chain Food Lion, LLC and its parent company Delhaize America, LLC over allegedly illegal background checks in violation of the Fair Credit Reporting Act (FCRA), according to a report from TopClassActions.com.

Top Class Actions reports the class action lawsuit filed in 2014 claimed Delhaize violated the FCRA requirement for “a clear and conspicuous disclosure” or “stand-alone disclosure” when a background check report is “obtained for employment purposes.”

Top Class Actions reports when the lead Plaintiff in the class action lawsuit, Janeen Brown, applied for a job at Food Lion and the grocery store chain “failed to disclose to her, in a document that consisted solely of the disclosure, that it would obtain a background check on her.”

After the background check report allegedly resulted in Brown’s termination from Food Lion based on a falsely reported conviction, the supermarket was required under the FCRA to provide a “‘pre-adverse action notice’ before it terminated her employment,” Top Class Actions reports.

In addition, Top Class Actions reports the background check class action lawsuit stated that “the FCRA requires that ‘before taking any adverse action based’ on a consumer report, an employer must provide a copy of the report and a summary of the consumer’s rights under the FCRA.”

The background check class action lawsuit is Jeneen Brown v. Delhaize America, LLC et al. Case No. 1:14-cv-00195, filed in the U.S. District Court for the Middle District of North Carolina. The full story is here: ‘Food Lion Job Applicants Reach $3M Background Check Class Action Settlement.’ A copy of the settlement is available at http://www.esrcheck.com/file/Brown-v-Delhaize-America-Food-Lion.pdf.

Employment Screening Resources® (ESR) identified FCRA class action lawsuits as one the ESR Top Ten Background Check Trends for 2015. To learn more, read the blog ‘FCRA Class Action Lawsuits Against Employers Becoming Routine’ by ESR Founder and CEO Attorney Lester Rosen.

FCRA Class Action Lawsuit Webinar

Employment Screening Resources (ESR) will present a complimentary webinar hosted by ESR founder and CEO Attorney Lester Rosen titled ‘Common Ways Consumer Reporting Agencies are Sued Under the FCRA’ on Tuesday, May 12, 2015. To register for the webinar, click here.

 

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