Cruise Line Company Settles Fair Credit Reporting Act Adverse Action Claims

Cruise line company American Cruise Lines recently settled claims that it violated the Fair Credit Reporting Act (FCRA) by allegedly failing to follow the adverse action process.

As backstory, the plaintiff sought employment with the cruise line and received a conditional offer contingent on passing the background check. The background screening company prepared the consumer report returning criminal record information, but allegedly did not include the fact that the plaintiff received a gubernatorial pardon for the records.

Allegedly the defendant employer emailed the plaintiff that “after reviewing your results, we have decided to pursue another candidate for the position and will no longer be extending an offer to you.” As outlined in the complaint, the plaintiff had not received a copy of the consumer report or a copy of the “A Summary of Your Rights Under the Fair Credit Reporting Act.” It wasn’t until two days after this email that he requested and received a copy of his report from the background screening company where he noticed the missing pardon information.

Due to the alleged failure of the employer to provide a copy of the report, the plaintiff claims he was denied the opportunity to review the report and dispute the inaccurate information before the adverse employment decision was made.

The parties reached a settlement in August 2025 for an undisclosed amount. The case serves as an important reminder for employers to review their process for using consumer reports in employment-related decisions to ensure they are following the FCRA’s adverse action requirements when applicable.

Kirk v. American Cruise Lines, Inc., Case 3:23-cv-01057-VAB, filed August 8, 2023 in the District of Connecticut.