Uber reached a $7.5 million settlement in a class action lawsuit over allegations that they had violated the Fair Credit Reporting Act after obtaining consumer background check reports for prospective Uber drivers.
According to the class action lawsuit, both companies Uber and Rasier failed to give the appropriate notice about their desire to procure background check reports, to obtain apt authorization before obtaining background check reports and to give required copies of the reports before taking adverse employment action against Uber drivers in violation of the FCRA.
Abdul Kadir Mohamed was the plaintiff that filed the first class action lawsuit, back on Nov. 24, 2014. A second lawsuit was filed just two days later. Uber wanted to compel arbitration in both FCRA class action lawsuits, but the court rejected both requests. A third class action lawsuit was filed in June 2015, and the three cases were consolidated on Oct. 1, 2015.
The plaintiffs asserted that Uber took adverse employment against them based on information contained in background check reports. However, Uber didn’t notify the plaintiffs about their determination to get the background check, failed to obtain proper authorization from them before getting the background check information, and failed to give the required copies of the reports or a summary of their rights under FCRA before taking adverse employment action against them.
The defendants refute the allegations and maintain FCRA laws do not apply in cases such as people who work as “independent transportation providers” for Uber. Nevertheless, they have agreed to settle the class action lawsuit in order to avoid the costs of ongoing litigation.
Class Members who would like to opt out of or object to the Uber FCRA settlement must do so no later than Dec. 14, 2017.
The actual payment each claimant will get from the Uber driver FCRA class action settlement will depend on whether the Class Member accepted an arbitration provision, and the total number of timely and valid claims submitted.
Class Members have to declare under the penalty of perjury that they were the subject of an unauthorized background check and/or consumer report requested by Uber before Jan. 3, 2015, and that they were not an employee of Uber at the time.
You are a Class Member of the Uber driver FCRA settlement if you were subject to a background check requested by Uber and Rasier before Jan. 3, 2015 in connection with your use, or sought use of, the Uber App as an Uber driver.
$27 to $62 (estimated).
The actual amount each claimant will receive from the Uber driver FCRA class action settlement depends on whether the Class Member accepted an arbitration provision, and the total number of timely and valid claims submitted.
Proof of Purchase
N/A. Class Members must declare under the penalty of perjury that they were subject to a background check and/or consumer report requested by Uber before Jan. 3, 2015, and that they were not designated as an employee of Uber at the time.
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Claim Form Deadline
In re: Uber FCRA Litigation, Case No. 3:14-cv-05200-EMC, in the U.S. District Court for the Northern District of California
In re: Uber FCRA Litigation
c/o Angeion Group, Settlement Administrator
1801 Market Street, Suite 660
Philadelphia, PA 19103
Robert R. Ahdoot
Theodore W. Maya
AHDOOT & WOLFSON PC
GOLDSTEIN BORGEN DARDARIAN & HO
Rod M. Fliegel
GIBSON DUNN & CRUTCHER LLP