Tag: Approved

A Final Settlement Has Been Approved in Class Action Suit Against Consumer Reporting Agency January 18, 2023 After more than 20 years, a class action lawsuit has received final approval. This lawsuit concerned allegations of significant violations of Fair Credit Reporting Act (FCRA) and the California Consumer Credit Reporting Agencies Act (CCRAA) against one of the largest consumer reporting agencies (CRAs) in the United States. This case has seen many appeals, including to the U.S. Supreme Court. As a result, it has resolved questions regarding Article III standing in a landmark ruling. This settlement finally resolves allegations that the consumer reporting agency had inaccurately reported class members as a “potential match” to names on the Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Asset Control (OFAC.) Originally filed on January 23, 2012, this class action complaint and the district court certified a class of more than 8,000. This original trial resulted in a jury verdict of $60 million. However, the Supreme Court overturned this verdict, significantly reducing the class. This ruling found that less than a quarter of the class members had suffered concrete harm because of a violation of federal law. According to Article III, members must suffer substantial damage to qualify for the verdict. After this ruling, the now reduced number of class members and the defendant returned to the district court and engaged in mediation. Here, the parties agreed to settle the claims for the remaining class members. Furthermore, it provided a claims process that allowed former class members to demonstrate that a third party received their report containing the alleged errors. With the final approval received from the district court, the CRA must pay $9 million to create a fund for the remaining class members. Of this, $4.2 million will go to class counsel and $75,000 in a service award to the named plaintiff. Though the court noted that the attorney’s fees, which amount to 44% of the total settlement, are high, they do not raise collusion concerns. The remaining amount will automatically distribute among the remaining Stipulation Subgroup Class Members. Therefore, they can expect approximately $1,900. Other Non-Stipulation Subgroup Class Members will not automatically receive any money from the settlement. Finally, members who made claims based on damages suffered can receive payments. The final result of this case shows the importance of accurate consumer reporting. Inaccurate reporting in violation of the FCRA and other state and federal laws can result in significant fines and potential liability for both CRAs and users of consumer reports. Discover the benefits of Pre-employ’s seamless background checks for your business Contact a Sales representative today. Source

Tag: Approved

A Final Settlement Has Been Approved in Class Action Suit Against Consumer Reporting Agency

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