FirstGroup Settles Background Check Case For $5.9M

Law360, New York (March 15, 2011, 5:33 PM EDT) -- Transit operator FirstGroup PLC agreed Tuesday to pay $5.9 million to settle two Illinois class actions brought against its subsidiaries for allegedly conducting illegal criminal background checks on prospective employees.

Judge Rebecca Pallmeyer gave her preliminary approval to the deal in the U.S. District Court for the Northern District of Illinois. The settlement resolves the claims of nearly 150,000 job applicants and employees who FirstGroup allegedly subjected to background checks in violation of the Fair Credit Reporting Act.

The settlement also compels FirstGroup to change its...
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