Sterling Infosystems Background Check Class Action Settlement

A settlement has been reached in a class action lawsuit alleging Sterling Infosystems Inc. violated the federal Fair Credit Reporting Act by failing to ensure its reports are complete and up to date.

If you were the subject of a background check prepared by Sterling Infosystems, you may be entitled to a cash payment from the FCRA class action settlement.

Plaintiff Jeffrey Scott Ridenour initially filed the Sterling class action lawsuit in January 2015, alleging the defendants failed to provide him with a copy of his criminal background report or a summary of his rights under the FCRA before taking adverse action against him.

Ridenour also claims that Sterling did not obtain the complete criminal or traffic records in its employment related consumer reports that it prepares about job applicants and employees.

“This practice of utilizing and providing incomplete reports is not a reasonable procedure designed to assure maximum possible accuracy concerning the job applicant or employee about whom the report relates,” the Sterling FCRA class action lawsuit states.

Ridenour asserts that he was the subject of a Sterling background check that “verified” he was convicted of a crime. According to the FCRA class action lawsuit, the information about this alleged “crime” was illegible, incomplete and inaccurate. It was reportedly impossible to determine the date, nature, disposition or other relevant information about the alleged crime. Ridenour asserts the so-called crime at issue in the Sterling background check report was actually a misdemeanor traffic offense that occurred 18 years before the report was compiled.

Sterling denies all allegations of wrongdoing and maintains it did not violate the FCRA. However, it has decided to settle the FCRA class action lawsuit to avoid the burden, expense and risk of ongoing litigation.

Who’s Eligible

The Sterling Infosystems FCRA settlement involves two Classes: a Virginia Opt-In Class and an Automatic Payment Class.

The Virginia Opt-In Class includes: “All natural persons (i) who were the subject of a consumer report sold by Sterling on any platform of Sterling except ESIQ to a third party from February 15, 2010 through October 31, 2016, (ii) who had a primary residential address in the Commonwealth of Virginia that was provided to Sterling in requesting such report, (iii) whose consumer reports contained at least one criminal record, (iv) who affirmatively opt in and complete a claim form certifying that their consumer report(s) was/were incomplete or not up to date, and (v) where no notice was sent under 15 U.S.C. § 1681k(a)(1).”

The Automatic Payment Class includes: “All natural persons residing in the United States (including all territories and other political subdivisions of the United States) (i) who were the subject of a consumer report sold by Sterling on any platform of Sterling to a third party from January 29, 2013 through October 31, 2016, (ii) whose report contained a criminal record, (iii) who then directly or indirectly disputed such criminal record contained in their consumer report with Sterling, and (iv) whose dispute resulted in an amendment to the criminal record of their report.”

Potential Award

$20-$85 (estimated)

The actual amount each Class Member will receive depends on the total number of Virginia claims that are filed. The settlement funds will be distributed to eligible Class Members on a pro rata basis.

Proof of Purchase

N/A

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

The Virginia Opt-In Class deadline is 6/6/2017

Members of the Automatic Payment Class do not need to submit a Claim Form to receive benefits.

Case Name

Ridenour and Halem, et al. v. Multi-Color Corp. and Sterling Infosystems Inc., et al., Case No. 2:15-cv-00041, in the U.S. District Court for the Eastern District of Virginia

Final Hearing

7/19/2017

UPDATE: The Sterling Infosystems Background Check settlement was granted final approval on July 25, 2017.  Let Top Class Actions know when you receive a check in the comments section below or on our  Facebook page.

UPDATE 2: On Sept. 19, 2017, Top Class Actions viewers who submitted valid claims for the Sterling Infosystems class action settlement started receiving checks worth as much as $91.87.

Settlement Website

www.SterlingVirginiaSettlement.com

Claims Administrator

Ridenour and Halem v. Multicolor Corp. and Sterling Infosystems Inc.
c/o American Legal Claim Services LLC
P.O. Box 23648
Jacksonville, FL 32241-3648
(800) 290-3037

Class Counsel

CONSUMER LITIGATION ASSOCIATES PC

Defense Counsel

FISH & RICHARDSON PC