CORRECTED: Verifications To Pay $3.8M To Settle Background Check Claims

Law360, New York (February 21, 2013, 1:22 PM EST) -- Background screening company Verifications Inc. has agreed to pay nearly $3.8 million to resolve a putative class action alleging the company failed to properly notify consumers when it ran background checks for employers, according to a filing in Virginia federal court Wednesday.

Under a proposed settlement, Verifications would pay $3.75 million to a class of consumers, a figure that includes $1.13 million to cover legal fees, according to a memorandum supporting final approval of the deal filed by the putative class. The settlement would resolve allegations that Verifications violated the Fair Credit Reporting Act by not providing the proper disclosures to...

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