As we previously reported, US Coachways entered into a $49.9 million Telephone Consumer Protection Act class action settlement. Because the motor coach leasing company could not fund the settlement, the company tendered a claim for the action to its insurer, Illinois Union Insurance Company, who subsequently denied coverage to US Coachways. US Coachways assigned
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Ninth Circuit Hears Oral Argument in Spokeo Following Remand From Supreme Court
On December 13, the Ninth Circuit Court of Appeals heard arguments in the long‑simmering Robins v. Spokeo Inc. putative class action, following reversal of the appellate court’s previous opinion by the Supreme Court. Robins alleges that Spokeo violated the Fair Credit Reporting Act by maintaining various inaccurate data points about the plaintiff in an online …
Telephone Company Settles TCPA Class Action for $11 Million
On December 14, the parties in Mey v. Frontier Communications Corp. filed a motion for preliminary approval of a settlement of a Telephone Consumer Protection Act class action.
According to the Complaint, Frontier, a telephone company that offers voice, broadband, satellite video, and wireless internet data access for individuals and small businesses, uses …
FTC and Florida Settle with More Defendants Involved in Alleged Telemarketing Debt Relief Scam
Approximately a year after filing an amended complaint and three months after settling with a group of co-defendants, the Federal Trade Commission and Florida Attorney General have filed papers seeking entry of agreed permanent injunctions and monetary judgments against a second group of co-defendants involved in an alleged nationwide debt relief telemarketing scam. The…
Court Finds That Spokeo Does Not Bar Enforcement of Background Check Class Action Settlement
In Schumacher v. SC Data Center, the plaintiff brought three class action claims against SC Data Center, Inc. under the Fair Credit Reporting Act related to its pre-employment background check process. Specifically, the plaintiff alleged that SC Data Center’s background check process violated the disclosure and adverse action provisions of the FCRA. The substance …
California Federal Court Remands Background Check Class Action on Basis of Article III Standing
On December 2, the court in Lee v. Hertz Corp., No. 15-cv-04562-BLF (N.D. Cal.) granted a motion to dismiss a putative Fair Credit Reporting Act class action against Hertz. The court’s order, which was based on a finding that the named plaintiffs—Peter Lee and Latonya Campbell—lacked Article III standing, remanded the case to …
District Court Rules Credit Card Debt Collection Dispute Must Be Arbitrated
On December 2, Judge Valerie Caproni of the Southern District of New York ruled that a class action suit alleging violations of the Fair Debt Collection Practices Act must be arbitrated. The class plaintiff, Alicia Zambrana, applied for and received a Best Buy-branded credit card from Household Bank N.A. (“HSBC”). While the court could not …
Petco Motion to Dismiss FCRA Background Screening Class Case is Denied
Petco’s motion to dismiss a background screening class action alleging violation of the Fair Credit Reporting Act was recently denied by a district court in the Southern District of California. In the putative class action, the plaintiffs alleged that Petco’s background check disclosure form violated the FCRA because it was not provided in a stand-alone…
OPM Issues Final Rule on Inquiring into Job Applicants’ Criminal History and Credit Information
Effective January 3, 2017, the Office of Personnel Management will require that, unless an exception has been granted, federal hiring agencies cannot inquire into an applicant’s criminal history or adverse credit information until after a conditional offer of employment has been made. This federal initiative is consistent with, and provides a timely reminder of, the …
Responding to a Data Breach: The FTC’s Guide
The FTC issued a new video and updated guide for businesses on how to respond to a data breach. The three steps identified in the guide and discussed in the video are:
- Secure your operations – This step focuses on preventing further attacks due to the same vulnerabilities.
- Mobilize your breach response team
- Engage a
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