Food Lion Job Applicants Class Action Settlement

An almost $3 million class action settlement was reached with Food Lion LLC and its parent company Delhaize America LLC to resolve allegations that the company used illegal background check procedures on its job applications, in violation of federal law. If you are an employee or applied for a job at Food Lion or another Delhaize subsidiary, you may qualify for benefits from this class action settlement.

The Food Lion class action lawsuit was filed on March 7, 2014 by plaintiff Jeneen Brown, alleging that Delhaize violated the Fair Credit Reporting Act (FCRA) when Brown applied for a job at Food Lion and that the grocery store chain, “failed to disclose to her, in a document that consisted solely of the disclosure, that it would obtain a background check on her,” while the FCRA requires “a clear and conspicuous disclosure” when the report is being “obtained for employment purposes.”

This report allegedly resulted in Brown’s termination from Food Lion based on an allegedly false report which said she was a convicted felon. The class action lawsuit says that the supermarket was required under the federal reporting law to provide a “‘pre-adverse action notice’ before it terminated her employment” based on what she says is an “erroneous background report it obtained.”

According to the illegal background check class action lawsuit, “the FCRA requires that ‘before taking any adverse action based’ on a consumer report, an employer must provide a copy of the report and a summary of the consumer’s rights under the FCRA.” These practices were reportedly the same at all of Delhaize’s grocery store chains.

There are two nationwide Classes in this this class action settlement: the improper disclosure Class and the pre-adverse action notice Class. The improper disclosure Class is for all Delhaize subsidiary employees and job applicants “who were the subject of a consumer report from March 7, 2012 through April 10, 2015.”

The pre-adverse action notice Class is for all Delhaize subsidiary employees and job applicants “whom adverse employment action was taken based, in whole or in part, on information contained in a consumer report from March 7, 2012 through April 10, 2015.”

Delhaize denies the allegations in this class action lawsuit but has agreed to this settlement to avoid the cost and risk of a trial. This Food Lion FCRA class action lawsuit was preliminarily approved on March 27.

Who’s Eligible

There are two Classes eligible for benefits from this class action settlement:

• Improper Disclosure Class: All Delhaize subsidiary employees and job applicants in the United States, except for employees and job applicants of Hannaford, who were the subject of a consumer report that was procured by Delhaize from March 7, 2012 through April 10, 2015.
• Pre-Adverses Action Notice Class: All Delhaize subsidiary employees and job applicants in the United States against whom adverse employment action was taken based, in whole or in part, on information contained in a consumer report from March 7, 2012 through April 10, 2015.

Potential Award

About $61 for Pre-Adverse Action Notice Class Members.

About $31 for Improper Disclosure Class Members.

About $92 for those who are members of both Classes.

Proof of Purchase

If you received a notice in the mail, that means that Delhaize’s records show that you are a member of one or both Classes. Notices went out April 17. The class counsel may be contacted if you are unsure whether or not you are a Class Member. You do not need to file a claim to receive benefits from this settlement.

Claim Form Deadline

No claim form deadline, but Class Members have until July 1 if they want to be excluded or object to this class action settlement. A fairness hearing will be held July 20.

Case Name

Jeneen Brown v. Delhaize America, LLC, and Food Lion LLC, Case No. 1:14-cv-00195-TDS-JLW, in the U.S. District Court for the Middle District of North Carolina

Final Hearing

07/20/2015

Settlement Website

www.DelhaizeSettlement.com

Claims Administrator

N/A. If you are uncertain as to whether you are a Class Member of the Food Lion settlement, you may contact Class Counsel to find out.

Class Counsel

NICHOLS KASTER PLLP

Contact Information:

Nichols Kaster PLLP
Attn: Dan Burnett
4600 IDS Center
80 S 8th Street
Minneapolis, MN 55420

1-877-213-8060
dburnett@nka.com

Defense Counsel

HUNTON & WILLIAMS LLP