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Two Verisk Analytics Inc. units agreed to pay $18 million to settle three proposed class action lawsuits that allege the company violated the Fair Credit Reporting Act (FCRA) by failing to take reasonable measures to ensure the accuracy of background check reports provided to prospective employers.
The putative class action lawsuits targeted two Verisk units: Intellicorp Records Inc. and Insurance Information Exchange LLC. These companies provide consumer reports including background checks. In their class action lawsuits, the plaintiffs accuse the companies of violating the FCRA by providing incorrect, outdated or incomplete information to potential employers. Specifically, they argue that the defendants failed to provide certain consumers with copies of their consumer reports before delivering them to prospective employers and that the companies failed to take reasonable steps to ensure the accuracy of the reports.
The class action lawsuits alleged a number of issues with the background checks that were sent to prospective employers. Plaintiff Jane Roe (a pseudonym) indicated that a prospective employer received a copy of her background check that omitted material information that was available in public records, claiming that Intellicorp relied on out-of-date information when creating the report.
Plaintiff Michael Thomas, who claims he has no prior criminal history, accused Intellicorp of including the criminal history from other individuals. Due to this error, he claims he was falsely identified as a criminal and was thus disqualified from employment. Plaintiff Mark Johnson raised a similar complaint against Insurance Information Exchange.
The FCRA is a consumer protection statute that requires consumer reporting agencies to create policies that are fair and equitable to consumers with regard to the collection, dissemination and use of their consumer and credit information. In their class action lawsuits, the plaintiffs allege that the companies “fail to use ‘reasonable procedures’ necessary to ensure the ‘maximum possible accuracy’ of the reports they sell.” They also claim that Intellicorp violated the FCRA by failing to notify consumers when it compiles and sells a consumer report to an employer.
The defendants have denied all allegations set forth in the class action lawsuits, insisting that they complied with the FCRA at all times.
By filing the class action lawsuits, the plaintiffs were seeking a statutory damage award between $100 and $1,000 as permitted under the FCRA.
Proposed Class Members include all U.S. residents who were the subject of one or more consumer reports provided to a third party by Intellicorp or Insurance Information Exchange for employment purposes, which contained a “Criminal SuperSearch” result reflecting an arrest or conviction between April 16, 2010 and Sept. 16, 2013.
The parties agreed to a class action settlement amount of $18.6 million, which is equal to the monetary value of free consumer reports to all putative Class Members. The consumer reporting agencies also agreed to update and improve their reporting policies to maximize the accuracy of the reports.
The parties are also seeking to consolidate the three actions into a single class action lawsuit.
The proposed class action settlement is still subject to Court approval.
The plaintiffs are represented by O’Toole McLaughlin Dooley & Pecora Co. LPA, Chavez & Gertler LLP, Consumer Litigation Associates, Lyngklip & Associates Consumer Law Center PLC, The Law Offices of Devin H. Fok, A New Way of Life Reentry Project and Cohen Rosenthal & Kramer LLP.
The class action lawsuits are Jane Roe, et al. v. Intellicorp Records Inc., Case No. 1:12-cv-02288; Michael R. Thomas, et al. v. Intellicorp Records Inc., Case No. 1:12-cv-02433; and Mark A. Johnson, et al. v. Insurance Information Exchange LLC, Case No. 1:13-cv-00616, all in the U.S. District Court for the Northern District of Ohio, Eastern Division.
UPDATE 1: Details on how to file a claim for the Intellicorp Background Check Class Action Settlement are up! Eligible consumers can receive between $50 and $2,000 if they file a valid claim by the April 21, 204 deadline.
EDITOR’S NOTE: The Claim Form for this settlement requires you to enter the last 4 digits of your Social Security Number. This appears to be the way the Settlement Administrator will verify that you were subject to an improper background check by the defendants. We ALWAYS encourage our readers to protect their personal information by confirming with the Settlement Administrator and/or law firms handling a case to ensure that such information is required. We are NOT a law firm or Settlement Administrator and cannot advise you on if you should submit your SSN. Information on how to contact the Settlement Administrator and law firms for the Intellicrop Background Check Class Action Settlement can be found at www.IntellicorpClassAction.com.
UPDATE 2: A federal judge granted final approval to the Intellicorp background check class action settlement on June 5, 2014. The first round of payments could be going out at the end of the summer/early fall and the second round in early 2015, according to some reports.
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222 thoughts onBackground Check Firms Agree to $18M Class Action Settlement
is this scam? what kind of jobs have you guys been applying to?
My first instinct was that it was a Scam. I just got the same letter a week ago and I have not applied for many jobs.. particularly a job that would even do a background check. I would say it is not worth it to give out any personal info for a possible couple hundred or even a $1000.
I got the same thing… is this real or what?
I received a letter about a background check and filling a class action law suite. I don’t have a criminal record-WHAT are they talking about. I will not send my personal information OUT.
I am very clueless of what this is about.i don’t know what employer used my information.
I have heard there is a Hospital in Normal Illinois that does a credit report before hiring people so maybe this is kinda what its about, they gave out false information maybe, I dont know what job used Tellicorp and how are we suspose to know
I received stuff today stating I could receive up to 2,000 dollars and have no clue really what this is about.
I recieved my paperwork in the mail and I am concerned that they are requesting us to fill in our SSN along with All of our other personal info.
I got a letter in the mail and it wants my personal info to start a claim like ssn im afraid to put it down what if this is a fruad I dont even no what its really for or what job used the company they are sueing.
Jessica, I do not know what company/companies this is for either. I am going to look it up on snopes.com and see if it is legit.
Plz comment back if it is legit….I felt uneasy about it asking for all my personal info
I checked it out, i got the background check they used and it seemed legit. P.S. they did ommit information from mine that made my minor traffic incident seem like something much more serious. So it pays to check it out
I was scared to fill it out too . But took a chance did it anyways just got a check in the mail today for 658$ . A company did a background check on me years ago and it came uo that I had a gun charge ( which I DEFINETLY do not ) So i lost a,really good high paying job because of it . Now years later justice us served :)
I have reeived my Inaccuracy Fund Claim Check Form and they are requesting my SS number. I have had several employers during the time period this lawsuite covers and don’t even know who got the incorrect information. Is this legit and do if they had my name and address to send this to me, why don’t they already have my ssn.
Robert
I got one in the mail but like you, I am concerned that I have to put my social security information. Could this be just a scam?
I did it, as they had me down that I spent a year in prison! Not a day even! I just received a check. Take the time to report it. It is a legit check to cash or deposit.
I jus received my check today for $327.00
I received the same amount today……..
Hello! I just received a check for 327.00 do we get more or is this it???
Hello, I also received a check in the amount of $327.04 was told I was going to receive a check up to $2000. I have not cashed or deposited the check as I didn’t know if this was a another scam can you tell me if you cashed it and it is indeed a legal document.
Dear Christen; That was my main concern also. I contacted the administrator, asked for her name & requested an e-mail. I made sure I wasn’t just throwing my ssn out there. Just check on the information you receive by contacting the administrator!!. I wish you the best of luck. Sincerely, Garett
You will be getting paperwork in the mail. I just filled mine out.
any new information on how to file a claim?
information about claim