Facts

On April 26, 2021, Marcell Lewis, on behalf of himself, all others similarly situated, and the general public, brought a class action against Hallcon Corporation and Loop Transportation Inc. (Loop), alleging violations of the Fair Credit Reporting Act. The class included all current, former, and prospective applicants for employment who applied for a job with Loop at any time from April 1, 2016, through March 31, 2022.

PLAINTIFF'S CONTENTIONS: Plaintiff alleged that defendants acquired consumer, investigative consumer, and/or consumer credit reports to conduct background checks on plaintiff and other prospective current and former applicants for employment purposes without providing proper disclosures and obtaining proper authorization in violation of the Fair Credit Report Act.

DEFENDANTS' CONTENTIONS: Defendants denied all contentions.

Settlement Discussions

On August 9, 2021, the parties commenced a full-day mediation with mediator Marc Feder.

Result

Defendants agreed to pay $300,000 to settle all claims.