Wells Fargo Settles Background Check Lawsuit for $12 Million

GavelBackgroundCheckLawsuits

Written By ESR News Blog Editor Thomas Ahearn

Wells Fargo Bank has agreed to a settlement of $12 million to resolve a class action lawsuit that claimed the financial institution allegedly violated the federal Fair Credit Reporting Act (FCRA) after denying employment to a job applicant based on the results of a background check report.

According to the settlement website, Plaintiff Terrell Manuel claimed he applied for and was offered a job at Wells Fargo Bank. At the time he applied for a job, Wells Fargo obtained a background check report about him from a third party Consumer Reporting Agency (CRA).

After Wells Fargo took an adverse action by denying him employment based on the background check, Manuel claims he was not given a copy of his background check report and other disclosures at least five business days before he was denied employment as a result of his report as required by the FCRA.

Two separate classes were certified by the Court in this background check class action lawsuit – the “Adverse Action Class,” which includes approximately 6,254 individuals, and the “Impermissible Use Class,” which includes more than 244,000 individuals.

Wells Fargo denies any wrongdoing and asserts that the background check settlement is not an admission of liability. The complaint is Manuel, et al. v. Wells Fargo Bank, National Association, Case No. 3:14-cv-00238-REP-DJN, in the U.S. District Court for the Eastern District of Virginia.

ESR Whitepaper on Background Check Lawsuits

Employment Screening Resources® (ESR) offers a complimentary whitepaper titled “Common Ways Prospective or Current Employees Sue Employers Under the FCRA” written by ESR founder and CEO Attorney Lester Rosen in response to the growing trend of background check lawsuits. The whitepaper is available for download at www.esrcheck.com/Whitepapers/Ways-Employees-Sue-Employers-Under-FCRA.

NOTE: Employment Screening Resources (ESR) does not provide or offer legal services or legal advice of any kind or nature. Any information on this web site is for educational purposes only.

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