Judge Approves $4.75 Million Settlement against Background Check Firm in FCRA Lawsuit

GavelBackgroundCheckLawsuits

Written By ESR News Blog Editor Thomas Ahearn

A New York federal judge has granted final approval to a $4.75 million settlement in class action lawsuit against a background check company for alleged violations of the federal Fair Credit Reporting Act (FCRA), according to a report on the TopClassActions.com website.

TopClassActions.com reports that U.S. District Judge Lorna G. Schofield agreed to the terms of the class action lawsuit settlement “which ends allegations that the background check company violated the FCRA by providing outdated information to employers which resulted in a loss of employment.”

The class action lawsuit claimed reports issued by the background check company contained 20-year-old charges, citations, and arrests. However, the FCRA does not allow background check reports to contain certain information older than seven years ago, TopClassActions.com reports.

TopClassActions.com also reports the class action lawsuit claimed that the background check company denied subjects of the background checks copies of their reports upon their request in violation of the FCRA, a federal law that regulates how background check firms use information.

The class action lawsuit is Ernst, et al. v. Dish Network LLC, et al., Case No. 1:12-cv-08794, in the U.S. District Court for the Southern District of New York. More information about the class action lawsuit settlement was not immediately available, according to TopClassActions.com.

Employment Screening Resources® (ESR) offers a complimentary whitepaper on Common Ways Consumer Reporting Agencies are Sued Under the FCRA that describes practices that can lead to lawsuits against CRAs that employers should know when choosing a background check provider.

In recent years, background check firms have become more focused on legal compliance due to increasing regulation, litigation and legislation. This is the number one trend selected by ESR founder and CEO Attorney Lester Rosen for the ESR Top Ten Background Check Trends for 2016.

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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