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This settlement is closed!
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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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