Top Class Actions  |  January 24, 2022

Category: Legal News

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HR manager holds Employee background check report - first advantage settlement - background checks lawsuit - FCRA settlement
(Photo Credit: Vitalii Vodolazskyi/Shutterstock)

First Advantage agreed to a class action lawsuit settlement to resolve claims it ran background checks without prior authorization, a violation of the Fair Credit Reporting Act (FCRA).

The settlement benefits individuals who had a background report provided to a prospective employer by First Advantage between Aug. 17, 2012, and Nov. 20, 2020, without prior authorization. 

First Advantage is a background check company specializing in providing services to employers during the hiring process. 

Two class action lawsuits against First Advantage claimed the company routinely flouted federal law when running background checks on consumers. According to the plaintiffs, the background check company failed to secure prior authorization from consumers as required by the FCRA.

Generally, the FCRA protects consumers by securing information collected and released by credit reporting bureaus. When companies request or run a background check on an individual, the FCRA requires “a clear and conspicuous disclosure” that “consists solely of the disclosure” so consumers are adequately informed of how their information will be used. The law also requires written authorization from individuals before running such reports 

First Advantage allegedly violated the FCRA by failing to clearly inform consumers of the background check with a clear and conspicuous disclosure and failing to get written authorization.

First Advantage hasn’t admitted any wrongdoing but agreed to resolve the claims with a class action settlement.

The First Advantage background checks lawsuit settlement provides several benefits including discounts and free disclosures. 

Class Members are eligible for a $15 discount on Instant Check and another $15 discount on Resume Check for a total of $30 in discounts. Both Instant Check and Resume Check are consumer background check products provided by First Advantage.

Under the settlement, Class Members can also receive nine free background file disclosure over the course of three years. Consumer protection laws ensure one free file disclosure per year, which Class Members can receive in addition to the nine free disclosures provided by the FCRA settlement.

First Advantage has agreed to change their terms and policies to ensure that consumers provide prior authorization before background checks are run on them by potential employers.

If Class Members wish to object to or opt out of the First Advantage background checks lawsuit settlement, they must do so within 60 days of the postmarked date on initial settlement disclosures. 

The final approval for the First Advantage FCRA settlement was granted Dec. 8, 2021.

Class Members have until Feb. 7, 2024, to redeem the discounts provided by the settlement and Feb. 7, 2025, to redeem the nine free file disclosures.

Who’s Eligible

The settlement benefits individuals who had a background report provided to a prospective employer by First Advantage between Aug. 17, 2012, and Nov. 20, 2020, without prior authorization.

Potential Award

$30 Discounts and nine free disclosures

Proof of Purchase

If First Advantage’s records indicate you are a class member, you will be sent a notice.

Claim Form

No claim form required.

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.

Redemption Deadlines

02/07/2024 to redeem the discounts
02/07/2025 to redeem the disclosures

Case Name

First Advantage Credit Cases, JCCP No. 4961 (Cal. Super. Ct., San Mateo Cty.), which is the proceeding coordinating Larroque v. First Advantage LNS Screening Solutions, Inc., Case No. CIV-535083 (Cal. Super Ct., San Mateo Cty.), and Chism v. First Advantage Background Services Corp., Case No. CGC-17-560531 (Cal. Super. Ct., San Francisco Cty.), in the Superior Court of the State of California County of San Mateo, Civil Complex Department  

Final Hearing

12/08/2021

Settlement Website
Claims Administrator

First Advantage Settlement
P.O. Box 43540
Providence, RI 02940-3540
844-917-2012

Class Counsel

Peter R. Dion-Kindem
PETER R. DION-KINDEM PC

Lonnie C. Blanchard, III
THE BLANCHARD LAW GROUP APC

Jeffrey D. Holmes
THE HOLMES LAW GROUP APC

Shaun Setareh
Thomas Segal
William M. Pao
SETAREH LAW GROUP

Defense Counsel

G. Daniel Newland
Eric Michael Lloyd
SEYFARTH SHAW LLP

Frederick T. Smith
Esther Slater McDonald
SEYFARTH SHAW LLP

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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.