Starbucks Prepares to Settle Lawsuits Over Flawed Background Checks

Two class actions – one filed in December 2016 in the U.S. District Court for the Western District of Washington, and the other in September 2017 in federal court in Atlanta, have been consolidated in Georgia “for the purpose of settling both class actions and directing notice to a single nationwide class.” In both cases, inaccurate background reports regarding criminal histories were provided for applicants by Accurate Background, which caused both candidates to be denied positions with Starbucks. The Seattle-based coffee chain is accused of violating the Fair Credit Reporting Act (FCRA) for failing to provide a copy of consumer reports and a written description of rights at least five days before the adverse action was taken.

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