TransUnion Reaches $9 Million Deal in Terrorist Watch List Suit

TransUnion is now poised to pay $9 million—instead of $40 million—to resolve a class action over its failure to take reasonable steps to ensure people weren’t falsely identified as potential terrorists on their credit reports.

The U.S. District Court for the Northern District of California granted preliminary approval of the proposed settlement on Tuesday.

The original $40 million recovery came undone after the US Supreme Court said that the majority of the roughly 8,000 class members hadn’t suffered any concrete harm and consequently lacked Article III standing.

The credit agency incorrectly flagged people as potential matches, based on their names ...