Inflection Risk Solutions Checks Incorrect Background $4 Million Class Action Settlement

Inflection Risk Solutions agreed to pay $4 million to resolve claims that included inaccurate criminal record information on background checks.

The rule benefits two categories: the Deemed Offenses Category and the Characterization of Nationally Inaccurate Offenses Category.

The Deemed Offense category is made up of consumers who were the subject of a consumer report published by Inflection Risk Solutions between October 12, 2018 and July 13, 2021, and who received a criminal conviction in Minnesota with a conditional sentence, the conviction being considered a misdemeanor but the consumer report indicated that the violation was a felony and did not indicate that the conviction was considered a misdemeanor.

The National Inaccurate Infringement Characterization Class includes consumers who were the subject of a consumer report issued by Inflection Risk Solution between October 12, 2018 and September 29, 2021, in which the report listed a criminal offense and qualified the offense of “Offence Class: Violence” despite the description of the crime not involving a violent act against another person. A list of offenses covered by this criterion can be found on the settlement website.

Inflection Risk Solutions is a California-based background check company. The company analyzes public records to develop reports on applicants and other entities.

According to a class action lawsuit, Inflection Risk Solutions violated the Fair Credit Reporting Act (FCRA) by including false criminal history information. The company would have labeled some criminal convictions as felonies or violent offenses despite not qualifying for that label.

“Minnesota law provides that a defendant who successfully completes his probation without being sentenced to prison will have his conviction considered a misdemeanor, even if the conviction was originally considered a felony,” notes the appeal. FCRA collective.

The plaintiff in the case says he was denied use of the Airbnb app because of this inaccurate credit report.

Inflection Risk Solutions has not admitted any wrongdoing, but has agreed to resolve these allegations with a $4 million class action settlement.

Under the terms of the settlement, class members may receive a cash payment based on their class status. Exact payout amounts will vary depending on the number of participating group members in each group.

The deemed misdemeanors category will receive payments of $747,000 from the settlement fund. Members of the deemed misdemeanors category can receive an estimated cash payout of between $470 and $480.

The National Inaccurate Violation Characterization Class will receive payments of $3.253 million from the Settlement Fund. Members of the National Inaccurate Violation Characterization Class can receive an estimated payout of between $70 and $95.

Group members can receive both types of payments if they are members of both groups. In order to collect both payments, class members meet the claim requirements for the National Inaccurate Infringement Characterization Class.

The exclusion and objection deadline is October 28, 2022.

Inflection Risk Solutions’ final settlement approval hearing is scheduled for November 15, 2022.

In order to receive a settlement payment, Class Members must submit a valid Claim Form by October 28, 2022.