Showing Posts In "FCRA Class Action Lawsuits" Category

9th Circuit Court Rules FCRA Disclosure Can Be Provided with Other Employment Materials

Fair Credit Reporting Act Affirming the district court’s summary judgment in favor of the defendant, the panel held that an employer does not violate the Fair Credit Reporting Act by providing an FCRA disclosure simultaneously with other employment materials, and by failing to place an FCRA authorization on a standalone document. The panel held that […]

Court Adopts “Concise Explanation” Standard for FCRA Disclosure Forms

The Ninth Circuit ruled that beyond a plain statement disclosing “that a consumer report may be obtained for employment purposes,” some concise explanation of what that phrase means may be included as part of the “disclosure” required by the Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681b(b)(2)(A)(i). The right provided by the FCRA to dispute […]

Ninth Circuit Reinforces Prohibition Against “Extraneous” Information in Background Check Disclosures

In March, the Ninth Circuit issued its third opinion on the question of when an employer’s background check disclosure satisfies the so-called “standalone” disclosure requirement in the Fair Credit Reporting Act (FCRA), specifically providing practical guidance for drafting such disclosures. Employers may order background reports for employment purposes but must first disclose their intention to […]

9th Circuit Holds All Members of Certified Class Must Have Article III Standing to Recover Monetary Damages

The 9th Circuit recently held that individual class members must satisfy Article III’s standing requirements in order to recover individual monetary damages. Class members who are a part of Ramirez v. TransUnion LLC who experienced no injury-in-fact traceable to the alleged statutory violation or challenged conduct must be excluded from any class damages award. The […]

In the Continuing Battle Over Standing, Fair Credit Reporting Act Class Action Plaintiffs Must Show Actual Injury for Failure to Provide Stand Alone Notice

Employers who dont comply with regulations of the Fair Credit Reporting Act (FCRA), including for violations like failure to provide notice to applicants in a stand-alone format and getting written permission before running the background check, could face expensive and time-consuming class action lawsuits of up to $1,000 per violation. But, after the concrete injury […]

FCRA Litigation Continues for Employers Using Background Reports

Two recent developments related to litigation and background screening. First, a major fast food restaurant chain became the subject of a class action complaint, and second, a major business technology and services provider settled a class action complaint, the terms of which are sealed. In both cases, plaintiffs alleged willful violations of the FCRA for: […]

Kmart Settles FCRA Class Action for $3 Million

Kmart Corporation has agreed to a $3 million settlement stemming from allegations that it violated the Fair Credit Reporting Act (FCRA) when using background checks to make employment decisions. The class-action suit alleged Kmart violated the FCRA by failing to provide “certain specific disclosures before it use[d] the report for an adverse action.” The putative […]

Is Mickey in Trouble? Disney Defends its Background Screening Policies

The company known for their signature character, Mickey Mouse, is defending a class action claim based on questions about its background screening policies. A lawsuit was filed against the Walt Disney Co. and the complaint alleges that Disney’s policy for notifying applicants about background checks has violated the FCRA. The plaintiff is alleging that Disney […]

Four Words the Fair Credit Reporting Act has Class Action Plaintiffs and Their Lawyers Repeating: “Show Me the Money!”

Over the past few years, the Fair Credit Reporting Act (FCRA), the federal law mandating, among other things, procedures and reporting requirements employers must follow when conducting background checks through a third party vendor, has become a hot-button employment issue, and a lucrative one for class action plaintiff attorneys. Similar to other class actions involving […]

Walt Disney Company and First Choice Background Screening are Subjects of FCRA Class Action Claims

Two class action complaints were filed recently in the Superior Court of California County of Los Angeles court alleging violations of the FCRA. The cases are Culberson v. The Walt Disney Company and Ruffing v. First Choice Background Screening . The claim against Disney is that they knowingly violated the FCRA by failing to provide […]

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