Christina Spicer  |  April 3, 2018

Category: Closed Class Actions

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This settlement is closed!

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Costco Frozen Berries Lawsuit

Costco has agreed to pay nearly $2.5 million to end a Fair Credit Reporting Act class action lawsuit alleging the company failed to use proper stand alone disclosure notices to obtain background reports about job applicants.

According to the plaintiff, Costco pulled his and other job seekers’ credit reports as a part of the application process; however, Costco allegedly used non-compliant disclosure forms in violation of the federal Fair Credit Reporting Act, or FCRA.

Costco disputes the class action lawsuit’s claims and denies all liability. The company raised a number of defenses to the claims asserted, including that the disclosure form in question fully complied with the FCRA and did not harm anyone.

The parties eventually agreed to settle the class action lawsuit on March 1, 2018, narrowly missing a trial set for March 5, 2018.

Costco has agreed to pay $2,490,000 to end the class action lawsuit. There are two classes; Class Members who were denied employment or otherwise not hired based on background reports will be automatically paid based on records provided for mediation. There are an estimated 1,510 Class Members in this “Autopay” Class.

All others who applied to work at Costco between Aug. 10, 2014 and April 17, 2017 will need to submit a Claim Form by May 14, 2018.

After covering the Class’s court costs and attorneys’ fees and incentive awards to the class representatives, the remaining settlement funds will be distributed on a pro rata basis among qualifying Class Members who submit valid and timely claims.

Class Members who want to object or be excluded from the terms of the settlement must do so no later than May 14, 2018.

Who’s Eligible

Class Members include those who applied to work at Costco between Aug. 10, 2014 and April 17, 2017. A second set of Class Members who were denied employment based on their background report will be entitled to an automatic payment; all other Class Members will need to submit a Claim Form.

Potential Award

$25 – $175 (estimated).

Individual payments will be determined in part by the number of valid and timely claims received. It is estimated that each Class Member will receive between $25 and $175, but payments could be as high as $400.

Proof of Purchase

Autopay Class Members do not need to submit a claim.

All other Class Members must submit a Claim Form that includes a Claim ID number provided on their notice.

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

5/14/2018

Case Name

Terrell v. Costco Wholesale Corporation, Case No. 16-2-19140-1 SEA, in the Washington Superior Court in and for King County

Final Hearing

6/15/2018

Settlement Website
Claims Administrator

Terrell v. Costco Wholesale Corporation
c/o JND Legal Administration
PO Box 91348
Seattle, WA 98111
1-833-380-5571
info@TerrellFCRASettlement.com

Class Counsel

E. Michelle Drake
Joe Hashmall
BERGER & MONTAGUE PC

Beth Terrell
TERRELL MARSHALL LAW GROUP PLLC

Defense Counsel

SEYFARTH SHAW LLP

WINTERBAUER & DIAMOND PLLC

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2 thoughts onCostco Employee Background Check Class Action Settlement

  1. Mark says:

    Update tca

  2. Antonio says:

    Any time known about checks

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.