Accurate Background inaccurate reporting $487K class action settlement

A settlement has been reached in a class action lawsuit that claimed Accurate Background violated the law by inaccurately preparing reports that contained criminal records that had been removed from public record. 

The settlement benefits all individuals in the U.S. and its territories about whom the Accurate Background furnished a consumer report for employment purposes between Feb. 20, 2020, and Feb. 28, 2023, that contained one or more items of criminal record information relating to a record that had been expunged, sealed or dismissed pursuant to California Penal Code § 1203.4 or otherwise extinguished from the public record. The individual must have disputed the information in the report, an amended report must have been issued, and the amendment of the report must have related to the reporting of a criminal record that the defendant had determined at some point before the dispute was resolved had been expunged, sealed, otherwise extinguished from the public record or dismissed pursuant to California Penal Code § 1203.4.

The plaintiffs in the case allege that within the class period, Accurate Background violated the Fair Credit Reporting Act (FCRA) by furnishing inaccurate credit reports that were ultimately sold to third parties. In doing this, the company allegedly failed to use all publicly available information, including expungement records, which therefore harmed consumers by providing prospective employers with adverse information. 

Accurate Background serves as a platform for employee screening and background checks. Catering to both large and small businesses, it identifies the ideal candidates for an employer based on specific requirements. The details presented in an Accurate Background check are determined by the screening services selected by the employer. These may encompass aspects such as criminal history, employment verification, education verification, drug testing, driving history, motor vehicle reports, and credit reports. 

Eligible class members can receive financial compensation if the settlement is approved and becomes final. Accurate Background will pay $487,000 into a settlement fund that will then be distributed to class members.

Class members who do not opt out of the settlement will receive a $300 payment without doing anything; they may also fill out a claim form for a higher payment. The amount of settlement class members who submit a claim form will determine the amount of the higher payments, but they will be capped at $5,000.

Class members seeking more than the $300 must fill out a claim form. Class members who fill out a claim form must make a simple declaration that they were harmed by the defendants’ actions, with no need for supporting documentation.

The deadline for exclusion and objection is Jan. 30, 2024.

A final fairness hearing in the  Accurate Background settlement will take place Feb. 22, 2024.

The claim form submission deadline is Jan. 30, 2024.

Who’s Eligible

The settlement benefits all individuals in the U.S. and its territories about whom the Accurate Background furnished a consumer report for employment purposes between Feb. 20, 2020, and Feb. 28, 2023, that contained one or more items of criminal record information relating to a record that had been expunged, sealed or dismissed pursuant to California Penal Code § 1203.4 or otherwise extinguished from the public record. The individual must have disputed the information in the report, an amended report must have been issued, and the amendment of the report must have related to the reporting of a criminal record that the defendant had determined at some point before the dispute was resolved had been expunged, sealed, otherwise extinguished from the public record or dismissed pursuant to California Penal Code § 1203.4.

Potential Award

$5,000

Proof of Purchase

N/A

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

01/30/2024

Case Name

Damarcus Stewart v. Accurate Background LLC, et al., Case No. 5:22-cv-01926-EJD, in the U.S. District Court for the Northern District of California, San Jose Division

Final Hearing

02/22/2024

Settlement Website

StewartFCRASettlement.com

Claims Administrator

1600 Market Street, Suite 2510
Philadelphia, PA 19103
215-735-8600

Class Counsel

John Soumilas
FRANCIS MAILMAN SOUMILAS PC

Defense Counsel

Pamela Q Devata
John W Drury
SEYFARTH SHAW LLP