Excerpted from a Top Class Actions blog
Frito-Lay Inc., a subsidiary of Pepsico Inc., has agreed to pay $2.4 million to settle a class action lawsuit alleging that the company violated the Fair Credit Reporting Act by using consumer credit reports when they conducted background checks as part of a hiring process without properly disclosing this practice to the job applicant.
Plaintiff Marcus Chism, a former Frito-Lay employee, requested preliminary approval of the settlement on Friday from a California federal judge.
This settlement will end his Frito-Lay class action lawsuit that claimed the company unlawfully failed to disclose the fact that they incorporated consumer reports into the background checks they run on job applicants.
The Frito-Lay FCRA class action lawsuit implicates Pepsico, Frito-Lay, and First Advantage Background Services Corp., the company Frito-Lay used to conduct the background checks on its employees.
The $2.4 million Frito-Lay class action settlement was reportedly reached after two mediated discussions between Chism and Frito-Lay. The two parties agreed upon a gross settlement of $62.87 per Class Member and a net settlement of at least $40. Reports show that this compensation is in line with, if not slightly higher than comparable settlements for alleged FCRA violations in the Northern District of California.
You can read the full post here.