LexisNexis Settles Esteem Retail Theft Database Class Action Lawsuit

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LexisNexis Risk Solutions Inc. has agreed to settle a class action lawsuit alleging its Esteem “retail theft contributory database” wrongfully labels job seekers as criminals even if they have not been convicted of a crime. On Friday, the background check class action settlement was approved by a Pennsylvania federal judge who found the settlement terms were “sufficiently fair, reasonable and adequate for preliminary approval.”

Under the terms of the class action settlement, LexisNexis agreed to suspend the Esteem database. LexisNexis has also agreed to implement more stringent requirements to protect job seekers if it decides to use the Esteem database for employment background check purposes in the future.

Lead plaintiffs Keesha Goode and Victoria Goodman alleged in the class action lawsuit that LexisNexis distributed damaging information compiled in the Esteem database to current and prospective employers without implementing proper safeguards, in violation of the Fair Credit Reporting Act.

According to the class action lawsuit, Goode was denied employment with Family Dollar Stores Inc. based on information contained in the Esteem database. Goodman claims she was denied a promotion from a Rite Aid store and was later fired based on information in the Esteem database. Although she was reinstated at Rite Aid, she alleges she continues to suffer “continuing impediments to future promotions or hiring.”

Goode and Goodman claim they never received the “pre-adverse action notice” required by the FCRA. Further, they claim they were denied copies of theft admission statements on which the Esteem database reports are based. Neither of the plaintiffs were charged with theft, the class action lawsuit says.

On Friday, U.S. District Judge Jan E. Dubois conditionally certified two Classes in the LexisNexis class action settlement. The first is the Pre-Adverse Action Injunctive Relief Class, which includes job seekers who received notice on behalf of an employer or potential employer regarding a consumer report that contained negative information from the Esteem database. This Class will not be eligible for compensation from the background check class action settlement, but will be notified that the Esteem database has been suspended. Class Members will be able to receive a copy of the report and will be able to file individual lawsuits against LexisNexis and third-party employers.

The second Class includes job seekers who submitted a request for a copy of the report but never received it, or who initiated a dispute related to the information from the Esteem database but never received a copy of the report. The approximately 3,000 Class Members in this category will be eligible to receive checks for approximately $800. They will also retain the right to file individual lawsuits for actual damages.

A final fairness hearing for the LexisNexis Esteem database class action settlement has been scheduled for Dec. 5, 2014.

Further information about the LexisNexis retail theft database class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The plaintiffs are represented by Irv Ackelsberg of Langer Grogan & Diver PC, James A. Francis of Francis & Mailman PC, Nadia Hewka and Sharon M. Dietrich of Community Legal Services and Leonard A. Bennett of Consumer Litigation Associates PC.

The LexisNexis Retail Theft Database Class Action Lawsuit is Goode, et al. v. LexisNexis Risk & Information Analytics Group Inc., Case No. 2:11-cv-02950, in the U.S. District Court for the Eastern District of Pennsylvania.