Background Screening Company Sued for Inaccurate Background Check Report

October 27, 2023

A background screening company will soon go to trial over allegations concerning its background check reports. According to the suit, the company composed a report based on outdated and inaccurate information. This report led to an employee’s termination and allegedly violated the Fair Credit Reporting Act (FCRA). A federal judge in San Diego oversaw this case and announced the next step..

The plaintiff applied to work at a healthcare diagnostics company in January 2014. The plaintiff said they went to a staffing agency to complete the hiring process. Following this, the agency requested a background screening company to run the applicant’s criminal history. During the screening, the plaintiff had already begun working for the healthcare diagnostics company.

The Case

The screening company submitted a report that indicated the applicant had a felony in 2009. According to the conviction, the applicant received a sentence of three years probation. After reviewing the information, the healthcare company promptly fired the plaintiff. Though the plaintiff’s conviction is accurate, the plaintiff had that felony expunged. As such, the case mentioned in the report had the “dismissed” listing.

The plaintiff sued the healthcare company, the background screening company, and the consumer report provider that furnished information on the defendant. The plaintiff claimed they violated the FCRA by reporting incomplete, outdated, and inaccurate information. The case started in a state court and then went to the U.S. District Court for the Southern District of California. However, the suit no longer includes the healthcare company and consumer report provider.

The plaintiff alleged that the background screening company acquired their report from a consumer report provider. Afterward, they attempted to verify the information they received from the San Diego Superior Court website. It explained that its attempt involved copying the website’s information. As such, it did not verify the formal court records in person.

The Results So Far

According to the lawsuit, the background screening company requested a summary judgment. They claimed to have accurate and up-to-date reasonable procedures for background checks. However, the judge disagreed and declared that the case should go to a jury. As such, it may go to trial at the end of November.

This case shows the importance of obtaining accurate background check reports and complying with the FCRA. Furthermore, it shows how failure to comply can result in fines, penalties, and lawsuits. The best way to ensure accurate background checks is to partner with a trusted background screening company.

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