LEXISNEXIS SETTLES RETAIL THEFT DATABASE CLASS ACTION LAWSUIT FOR $2.38 MILLION
Lead plaintiffs, Keesha Goode and Victoria Goodman, brought a class action lawsuit against LexisNexis alleging that it had illegally distributed damaging information compiled in its Esteem database to current and prospective employers.
According to the suit, Goode was denied employment at Family Dollar Stores, Inc. and Goodman was denied a promotion and later fired from Rite Aide based on information contained in the Esteem database.
Plaintiffs alleged that the Esteem database wrongfully labels job seekers as criminals even if they have not been convicted of a crime. Last week, a Pennsylvania federal judge gave preliminary approval to a $2.38 million settlement and LexisNexis suspended its Esteem database and agreed to implement stricter requirements to protect consumers if it resumes use of the database again.