Sterling Infosystems Background Check Class Action Settlement

UPDATE: The Sterling Infosystems Background Check Class Action Settlement was granted final approval by the court on September 22, 2020. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

A $15 million settlement has been reached to resolve a Sterling Infosystems outdated background check class action lawsuit.

The settlement benefits individuals who underwent a Sterling Infosystems background check between Dec. 14, 2013 and Dec. 19, 2019, and whose report contained a high risk indicator based on outdated information (information at least seven years older than the report).

Plaintiffs in the Sterling Infosystems background check class action lawsuit claimed that the company violated the Fair Credit Reporting Act (FCRA) by including outdated information in background check reports. Allegedly, the company included information from addresses where the subject of the report hadn’t lived for at least seven years.

According to the Sterling Infosystems background check class action lawsuit, this outdated information resulted in reports including a “high risk indicator” if a report subject was associated with hotels, motels, rooming houses, boarding houses, or personal care facilities.

“Defendant labels consumers as having this ‘high risk indicator’ even when, according to Defendant’s own reports, the consumer has not been ‘seen’ at the address triggering that indicator for many years,” the Sterling Infosystems background check class action lawsuit claims.

The plaintiffs also noted that many of the buildings deemed “high risk” are simply regular apartment buildings. Failure to maintain reasonable procedures regarding the verification of these addresses allegedly led to unneeded “high risk” classifications. These classifications reportedly caused unfair consequences for consumers.

This is not the first time Sterling Infosystems has faced legal action over outdated information. In 2017, the company faced a class action lawsuit that claimed the company failed to properly handle background checks, resulting in employment problems.

Sterling Infosystems has not admitted any wrongdoing in the newest background check class action lawsuit against them, but has agreed to pay $15 million to resolve the claims.

Payments under the Sterling Infosystems background check class action settlement will depend on amount in fees, service payments and costs deducted. However, payments are estimated to be around $45 per Class Member.

No claim form is required to benefit from the Sterling Infosystems background check class action settlement. Instead, Class Members will automatically receive benefits from the settlement without taking action. However, Class Members can update their address and contact information on the settlement website to ensure their payments are sent to the right place.

Class Members who wish to exclude themselves from the Sterling Infosystems background check class action settlement or object to the settlement terms must do so by Aug. 11, 2020. The final approval hearing for the settlement is scheduled for Sept. 22, 2020.

Who’s Eligible

Individuals who had a Sterling Infosystems background check prepared about them between Dec. 14, 2013 and Dec. 19, 2019 whose report contained a high risk indicator based on outdated information (information at least 7 years older than the report).

Potential Award

Payments of around $45.

Exact payments will depend on the net settlement fund amount after fees, service payments, and costs are deducted.

Proof of Purchase

N/A

Claim Form

There is no Claim Form for this settlement. Class members with further questions can click here for more information.

Claim Form Deadline

8/11/2020

Case Name

Gambles v. Sterling Infosystems Inc., Case No. 1:15-cv-09746-PAE, and Merck v. Sterling Infosystems-Ohio Inc., Case No. 1:17-cv-02033-PAE, both in the U.S. District Court for the Southern District of New York

Final Hearing

9/22/2020

Settlement Website

AddressClassAction.com

Claims Administrator

Sterling Settlement Administrator
1650 Arch St, Suite 2210
Philadelphia PA, 19103
Info@AddressClassAction.com
1-844-718-9778

Class Counsel

E. Michelle Drake
Joseph C. Hashmall
BERGER & MONTAGUE PC

David Seligman
TOWARD JUSTICE

Beth Terrell
Erika L. Nusser
TERRELL MARSHAL LAW GROUP PLLC

Defense Counsel

Michael O’Neil
Albert E. Hartman
REED SMITH LLP

Join a Free Employee Background Check Class Action Lawsuit Investigation

If a company performed a background check on you as part of the pre-employment process in the last 5 years, an experienced employment attorney can help you determine if the employer complied with federal rules during that process.

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