Sterling Infosystems $2.5M Consumer Reports Settlement

If you had a consumer report prepared by Sterling Infosystems between September 25, 2018, and June 4, 2021, you may be eligible to claim an award ranging from approximately $175 to $400 from a class action settlement.

Sterling Infosystems, Inc. has agreed to pay $2,500,000 to settle a class action lawsuit for allegedly including inaccurate criminal records in consumer reports.

Who can claim a payout?

To qualify as a class member, you must have had a consumer report prepared by Sterling Infosystems that included a criminal record matched to you based on a name from a social security number Trace, where the name did not exactly match the record reported.

Additionally, one of the following must apply:

• You disputed the record, and an amended report was issued.
• You received a pre-adverse action notice regarding the report.

All consumers who fit the above criteria but did not dispute or receive a pre-adverse action notice are part of the Injunctive Relief Class.

How much are the payouts?

Those who disputed the record and had an amended report issued, or who submit a Request for an Enhanced Payment, will receive a payment twice the amount of those who do not meet these criteria.

• Standard Payment: Approximately $175-$200
• Enhanced Payment: Approximately $350-$400

The exact amount each class member receives will depend on the number of valid claims submitted and the court-approved deductions for fees and expenses.

How to claim a payout

Class members do not need to take any action to receive their payment. Once the settlement is approved, checks will be mailed automatically to eligible members.

If you believe you are eligible for an enhanced payment, you must submit a Request for Enhanced Payment by February 11, 2025.

$2.5 Million settlement fund

The settlement fund of $2,500,000 will cover:

• Payments to Damages Class Members
• A service award of up to $10,000 for the Class Representative
• Class Counsel's attorneys' fees and costs, totaling one-third of the fund
• Settlement administration expenses

Important dates

• Fairness Hearing: May 7, 2025
• Deadline to File a Claim: Not applicable as no action is needed

When is the Sterling Infosystems Settlement payout date?

The Court will hold a Fairness Hearing on May 7, 2025, to decide whether to approve the settlement. If approved, payments will be distributed to class members approximately 70 days afterwards, assuming no appeals are filed.

Why is There a Class Action Settlement?

The lawsuit was filed because Sterling Infosystems allegedly violated the Fair Credit Reporting Act by including inaccurate criminal records in consumer reports. The settlement was reached to resolve these allegations without admitting any wrongdoing.