LabCorp Settles FACTA Class Action Lawsuit For $11M

A proposed consumer class action lawsuit against LabCorp for violations of FACTA (Fair and Accurate Credit Transactions Act) has resulted in a proposed $11 million settlement.

The FACTA class action lawsuit initiated by lead plaintiff Christopher Legg alleged that “LabCorp systematically printed debit and credit card transaction receipts that revealed the expiration dates of cards used in the transaction, in willful violation of the Fair and Accurate Credit Transaction Act.” According to the FACTA lawsuit, LabCorp has continued to deny the allegations.

The consumer class action lawsuit settlement was discussed on a number of occasions, including during several days of mediations. The FACTA lawsuit states, “Finally, after the production and analysis of approximately forty-six thousand pages of documents, the taking of approximately twenty depositions, including four expert depositions” as well as other motions, the parties finally reached the settlement.

Under the proposed agreement, LabCorp will pay $11 million to a settlement fund that will be divided among an estimated 665,000 class members who submit a timely claim.

First the costs of notice of the class action, administration, approved fee and class representative awards will be deducted from the settlement amount, with the eligible class members receiving the remainder of the settlement divided pro rata among them, approximately $200 per class member for statutory damages incurred for willful violations of FACTA.

In addition to relief for past actions, class members and any LabCorp consumer will also have the benefit of receiving FACTA compliant debit and credit card receipts from now on as a result of the lawsuit settlement.

FACTA Compliance

Under the FACTA act of 2003, consumers are provided protection of their personal debit card and credit card information on transaction receipts provided to the customer. In order to safeguard financial information, FACTA made it illegal for businesses to print out full credit card or debit card account numbers and expiration dates on receipts.

Debit and credit card account numbers on customer receipts must be truncated, or shortened, so they do not include the full account number. The merchant is only allowed to include the last five digits maximum on a customer transaction receipt. In general, a FACTA compliant receipt would look something like this:

Acct.. # ***********67890

The expiration date may not appear on the credit card receipt at all. It must be left off in its entirety or it may appear with asterisks as in the example below:

Exp: **/**

FACTA only applies to customer copies of electronic receipts and does not apply to handwritten or imprinted receipts, or to merchant copies of transactions.

FACTA Violations

There are hefty penalties for merchant violations of FACTA. If a company has found to have willfully violated FACTA by printing credit card or debit card account numbers with anything other than the last five digits or by printing expiration dates, a penalty of $100 to $1000 per transaction may be assessed. For large businesses out of compliance, this could be very damaging.

If you have received an electronic copy of your receipt for a debit card or credit card transaction and it listed more than the last five digits of your credit or debit card account, or listed any part of the expiration date, you may have a legal claim. An experienced FACTA attorney can review your case and discuss your legal options in a complimentary consultation.

The LabCorp FACTA Class Action Lawsuit is Legg v. Laboratory Corporation of America Holdings, Case No. 0:14-cv-61543, in the U.S. District Court for the Southern District of Florida.

UPDATE: Claim filing instructions for the LabCorp FACTA class action settlement are now available! Click here or visit www.LabFACTASettlement.com for details.

UPDATE 2: According to one of our Top Class Actions readers, Class Members should expect to receive a LabCorp FACTA settlement check soon!

In an email correspondence, the Claims Administrator allegedly wrote: “The Settlement was approved at the Final Approval Hearing on February 16. The time during which an Appeal could be filed has passed, so the Settlement is finalized. The Claims administrators are currently working on processing the claim forms and settlement funds.The current estimate is that checks will be mailed to all qualifying claimants within the first week of May.”

Keep checking this article as we will updated it when more details become available.

UPDATE 3: On May 9, 2016, Top Class Actions readers started receiving settlement checks worth as much as $179.44! 

Free FACTA Class Action Lawsuit Investigation

If you made one or more purchases and the retailer provided you with a receipt that contained more than the last five digits of your credit or debit card number or the expiration date, you may be eligible for a free class action lawsuit investigation and to pursue compensation for these FACTA violations.

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