DMG Mori Proposes $825,000 Settlement in Background Check Suit

Machine tool manufacturer DMG Mori USA Inc. proposed paying a total of $825,000 to resolve claims that it violated the Fair Credit Reporting Act by providing prospective employees with background check forms containing extraneous and confusing information, according to a motion for preliminary approval of the deal.

The proposed settlement, filed Tuesday in the U.S. District Court for the Northern District of California, would allocate $450,000 of the award to attorneys’ fees.

The remaining $375,000 would be used to pay actual and administrative costs, any service award approved for class representative Steven Arnold, and class member claims.

If approved, each ...