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Spokeo decision leads to dismissal of proposed FCRA class action

A New Jersey federal judge tossed the class-action lawsuit against Michaels Stores, Inc., citing the prior U.S. Supreme Court ruling. 

The plaintiffs in the case claimed that Michaels failed to provide sufficient disclosures that the store intended to procure background checks on job applicants, as required by the FCRA.

However, a U.S. District Judge found that the plaintiffs – who were all hired by Michaels – lacked standing as they could not demonstrate they suffered concrete harm.

In Spokeo, the U.S. Supreme Court ruled that in order to have standing to bring such a case, plaintiffs must have suffered a concrete and particularized injury – a requirement that is not automatically satisfied by allegations of a mere statutory violation.

"Plaintiffs allege a violation of what I have called the purely formal requirements of FCRA," the New Jersey federal judge ruled. “They do not factually allege any harm aside from the statutory violation itself."

Source: Law360.com, 1/25/2017

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