Employer Reaches $950k Settlement in Disclosure Form Class Action

An auto parts chain recently settled a class action that alleged the disclosure form used was in violation of the Fair Credit Reporting Act (FCRA). The maximum $950k settlement will result in an estimated settlement amount of $2.92 per class member, with the attorneys receiving $237,500 and the named plaintiff receiving $7,500. The settlement covers individuals who completed a disclosure and authorization form and for whom a consumer report was procured from January 31, 2015 to February 17, 2021.

As alleged in the complaint, the disclosure form violated the “solely” requirement as it included a waiver of liability and violated the “clear and conspicuous” requirement as it combined both federal and state disclosure language into a single document. The plaintiff thus claimed he was confused of his rights and thus did not provide a valid authorization for the background check request.

The employer denied liability or any wrongdoing associated with the claims alleged in the complaint.