Melissa LaFreniere  |  November 18, 2015

Category: Labor & Employment

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Sterling InfosystemsA $4.75 million Sterling Infosystems (now known as Sterling Backcheck) Fair Credit Reporting Act class action lawsuit settlement has been granted final approval by a New York federal judge.

U.S. District Judge Lorna G. Schofield agreed to the terms of the Sterling class action settlement on Friday which ends allegations that the background check company violated the FCRA by providing outdated information to employers which resulted in a loss of employment.

Lead plaintiff Scott Ernst, a former Dish Network employee, claims that his employer never informed him or other workers about the background report information which prevented anyone from correcting potential errors. The Sterling background check class action lawsuit also alleged that Sterling denied Dish employees copies of their background checks even when they requested one.

The background check class action lawsuit settlement does not dismiss Dish Network who still faces claims of violating the FCRA by not giving employees copies of the reports before taking action against them.

Ernst claims that the report issued by Sterling contained 20-year-old charges, citations and arrests of Dish satellite TV installers. According to the Sterling class action lawsuit, the FCRA does not allow background checks to contain information that took place more than seven years ago. After the report came out, Ernst says he was no longer allowed to work on Dish projects.

Judge Schofield approved three different Classes in connection with the Sterling settlement including:

  • The Criminal Record Settlement Class is open to all Class Members who Sterling issued a consumer report for from Dec. 4, 2010 to the present where the report contained one or more criminal counts that did not result in a conviction but which predate the report by more than seven years.
  • The DISH Contractor Settlement Class is open to all Class Members who were the subject of a consumer report issued by Sterling to a contractor participating in the DISH
    Network Contractor Program, and for whom certain information contained in the report was also provided by Sterling to DISH in a summary report on or after Dec. 4, 2010.
  • The MVR Record Settlement Class is open to all Class Members who were subject of a Sterling consumer report between Dec. 4, 2010 to the present in which the report contained one or more items of information in the motor vehicle records (“MVR”) section of the report which predate the report by more than seven years.

The Sterling class action settlement estimates that Class Members in the Motor Vehicle Records Class will receive $61; Class Members in the Criminal Record Class will receive $47; and Class Members in the Dish Contractor Class will receive $42.

More information about the Sterling class action lawsuit settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The Class Members are represented by E. Michelle Drake, Michele R. Fisher, Joseph C. Hashmall, Megan D. Yelle and Adam Hansen of Nichols Kaster PLLP.

The Sterling Background Check Class Action Lawsuit is Ernst, et al. v. Dish Network LLC, et al., Case No. 1:12-cv-08794, in the U.S. District Court for the Southern District of New York.

UPDATE: On Sept. 7, 2016, Dish Network reached a $1.75 million settlement with a group of contractor technicians who allege the satellite television company violated the Fair Credit Reporting Act (FCRA) by not providing them with proper consent and disclosure forms needed to run their background checks.

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13 thoughts onSterling Background Check Class Action Settlement Gets Final OK

  1. Christopher Strange says:

    I was awarded a settlement check for Ernst V Dish Network class action but did not know. I have a check that needs to be re-cut. Who should I contact?

  2. Lacy Carriere says:

    When will they start issuing settlements for this case?

  3. Eric says:

    I was totally unaware of the status of this case even though I was a class member. I’m satisfied with the decision that the court made. I just want to say thank you to the people that brought this issue to the courts and fought for the rights of the American worker.

  4. cindy jones says:

    I was denied a job at Walmart because of a something on my record from 1998 thanks to Sterling an it’s still on my credit report , how do I get involved with this law suit.

    1. Top Class Actions says:

      This particular lawsuit reached a settlement, and the claim deadline has passed: https://secure.dahladmin.com/DISHFC/Index. You can contact class counsel to discuss your personal situation. Class counsel is listed at the bottom of this article, and can be Googled for contact information. Good luck!

  5. Jessica Plunkett (smith) says:

    How can we get involved with the class action. I was denied employment because they said there was a felony only my record. I don’t have any felonies. They “amended” my background check but if I run it it still comes up as amended. The person who commuted the crimes had the same name but different Ss# and lives in a different county. This has been hell for me

  6. Tyrone Ferguson says:

    I was denied too job due to sterling submitting to employers outdated information on my criminal background check. I live in Nashville Tennessee and they go back 7 years and whatever company uses Sterling says although the crime was over 7 years sterling submitted it and I can have the job! Something must be done about this! We have paid our debt to society!

  7. Top Class Actions says:

    UPDATE: On Sept. 7, 2016, Dish Network reached a $1.75 million settlement with a group of contractor technicians who allege the satellite television company violated the Fair Credit Reporting Act (FCRA) by not providing them with proper consent and disclosure forms needed to run their background checks.

  8. Linda Blankenship says:

    I was also denied employment due to a background check by Sterling in VA on January 15, 2016. My job was to begin on January 18, 2016 and to date, I still have not received the report from Sterling. The employer states they do not receive a reason employment is denied by Sterling, only that Sterling provides Faneuil with a =yes= or =no= answer. I have informed Faneuil that Sterling has not provided me with a copy of the report. I have called Sterling once and emailed three times, only to be informed that the report was mailed to me. Faneuil has advised me to reconcile the reason I was denied employment with Sterling, but Sterling will not give any information by phone. However, Sterling did provide a contact telephone number for Trans Union.

  9. CaSaundra Watson says:

    I was denied employment due to felony convictions dating back to 1999 and 11 years prior and deemed unemployable by walmart and GC services here in Texas.

    1. Phil says:

      This class action suit is for NON-conviction information. If you were convicted, then it doesn’t apply.

      1. Tamara Smith says:

        How can i apply

    2. Leslie says:

      CaSaundra, If this company disclosed your info and and your felony was older than 7 years then this does apply to you.

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