California Federal Court Tentatively Approves $5.7 Million Deal to Settle Class Action Alleging FCRA Violations Based on Background Checks
A California federal judge issued a written tentative ruling indicating that she would likely approve AutoZone, Inc. 's agreement to pay $5.7 million to settle claims that the company illegally ran credit checks on 200,000 prospective employees. In September 2014, two individuals filed suit on behalf of a class against AutoZone that alleges AutoZone was routinely running background checks on prospective employees without complying with applicable law. According to plaintiffs, AutoZone failed to properly disclose to potential hires that it was running background checks on them, thereby violating state law and the FCRA. The auto parts retailer has proposed payment of the $5.7 million settlement amount in the form of $20 in cash or $40 in gift cards to class members.