Class Action News

Delta Air Lines Settles Background Check Class Action for $2.3M

Feb. 28, 2019, 6:27 PM

Delta Air Lines Inc. will pay $2.3 million to settle class claims by job applicants who allege it improperly obtained their credit reports, according to a deal that won preliminary approval Feb. 27.

The nationwide class includes about 44,100 members. They won’t have to make a claim but will be automatically enrolled in the class unless they choose to opt out.

Class counsel may seek up to one-third of the settlement amount in attorneys’ fees.

Joseph L. Schofield sued Delta under the Fair Credit Reporting Act and California law after he applied for a job with the company.

Delta’s background check procedures lacked the required disclosures and authorizations, he says.

Judge Edward M. Chen of the U.S. District Court for the Northern District of California wrote the opinion.

A hearing on final approval and attorneys’ fees is scheduled for July 11.

Setareh Law Group represented the applicants.

Morgan, Lewis & Bockius LLP represented Delta.

The case is Schofield v. Delta Air Lines, Inc., 2019 BL 66170, N.D. Cal., No. 18-cv-382, 2/27/19.

To contact the reporter on this story: Perry Cooper in Washington at pcooper@bloomberglaw.com

To contact the editors responsible for this story: Jo-el J. Meyer at jmeyer@bloomberglaw.com; Steven Patrick at spatrick@bloomberglaw.com