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May 26 2016

California District Court Joins Growing List of Courts Staying FCRA Class Action Lawsuits

"In Lee v. Dollar Thrifty Auto. Group, Inc., the plaintiffs brought a class action lawsuit alleging multiple violations of the employment background check provisions of the FCRA. Specifically, the plaintiffs claimed that the defendants failed to provide them with disclosures properly informing them that a background check would be obtained. They also claimed that the defendants took adverse action against them based on their background check without following the FCRA 's adverse action protocol. Recently, the defendants moved to stay the matter pending the Supreme Court 's decision Spokeo, Inc. v. Robins. The Court in Lee found that a stay was appropriate because Spokeo could have a determinative effect on the case. Although it is difficult to predict the outcome of Spokeo, there is little doubt that a decision for the defense in that case could significantly impact ""no harm"" consumer class actions."