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June 21 2017

Kansas Federal Court Grants Partial Approval To Background Check Disclosure Class Action Settlement

In January, the United States District Court for the District of Kansas granted partial preliminary approval to the class settlement in Lengel v. HomeAdvisor, Inc., No. 15-2198-KHV.
The plaintiff alleged that the company violated the Fair Credit Reporting Act (FCRA) when it provided her a background check disclosure and authorization form that did not consist "solely" of the disclosure. She sought only statutory and punitive damages, foregoing any claim for actual damages.
The parties reached an agreement to settle the case on a class-wide basis, filing an unopposed motion for preliminary approval of the class settlement in November 2015 and still pending until January 2017. The Court identified three problems that precluded preliminary approval in full.