About this Case:
Terrell Marshall Law Group worked together with their co-counsel Berger Montague and Towards Justice to combat the misuse of big data to harm low-wage workers. Sterling Infosystems, Inc. provides background check services to large employers, including Wal-Mart. Background or credit checks produced by companies like Sterling can reveal intensely personal information and have a significant impact on access to credit and employment prospects. Inaccuracies in background check information are common and have a particularly harsh impact on low-income people and people of color. For example, our clients allege that Sterling’s background checks provided to potential employers designated untraditional addresses, which are more likely to be used as mailing addresses by low-income people, as “high risk indicators,” including addresses that appeared to correspond with hotels, motels, rooming houses, boarding houses, or personal care facilities. Our clients also allege that systematic inaccuracies in Sterling’s background checks inaccurately suggested that the subject of the background check was transient and moved frequently between addresses. The plaintiffs therefore alleged violations of the Fair Credit Reporting Act.
On September 23, 2020, the Judge Paul A. Engelmayer in the Southern District of New York granted final approval to a $15 million class settlement. The parties expect class member settlement payments to be issues in early 2021.
First Consolidated Class Action Complaint
Order Conditionally Certifying Class and Preliminarily Approving Settlement
Case Contact Information:
Terrell Marshall Law Group PLLC
Joseph C. Hashmall