UNITED STATES DISTRICT COURT DISTRICT OF MARYLAND

Transcription

1 UNITED STATES DISTRICT COURT DISTRICT OF MARYLAND CHARMAINE FRECKLETON AND THOMAS J. JUST, on behalf of themselves and : all others similarly situated, : : Plaintiff : Case No. 14-cv-0807-GLR : : CLASS ACTION v. : : TARGET CORPORATION, : : Defendant : United States District Court for the District of Maryland NOTICE OF CLASS ACTION, PROPOSED SETTLEMENT AGREEMENT, AND FINAL APPROVAL HEARING If you were offered but later denied employment, promotion, or transfer with Target Corporation between March 2012 and June 2016, this Settlement may affect your legal rights and entitle you to a payment from a class action settlement. A federal court authorized this notice. This is not a solicitation from a lawyer. You may be affected by a class action lawsuit about whether Target Corporation ( Target ) violated federal law regulating the procedures for conducting and using background checks on internal and external job applicants. Target and the individuals who filed the lawsuit have agreed to a Settlement, and this letter is intended to notify you of the Settlement and inform you of your rights and options related to it. These rights and options and the deadlines to exercise them are explained in this Notice. If you are a member of the Settlement Classes, your legal rights are affected whether you act or not. Please read this Notice carefully. 1. The Purpose of this Notice. You are receiving this Notice because records indicate that, between March 2012 and June 2016, you applied for and were offered but later denied either employment, promotion, or a transfer with Target. If you were not offered employment, promotion, or a transfer with Target, you may disregard this message. The purpose of the Notice is to inform you about this lawsuit, the Settlement and Settlement Class definitions that the Court has preliminarily approved, your rights in connection with the Settlement including your rights to object, to opt out or exclude yourself, and to receive payments from the Settlement Fund and a hearing to be held before the Court on December 8, 2017, to consider the fairness, reasonableness, and adequacy of the Settlement and related matters.

2 2. What the Lawsuit is About. The lawsuit claims that Target violated a federal law the Fair Credit Reporting Act ( FCRA ) which sets forth the procedure that employers must follow when they obtain and use background checks to make employment decisions. The FCRA requires employers to disclose that they intend to conduct a background check for employment purposes and to obtain an individual s permission beforehand. The FCRA also requires that the disclosure be in a separate document with no language other than the disclosure itself and the authorization. This lawsuit alleges that Target provided a disclosure that contained additional, extraneous language beyond the disclosure and the authorization. The FCRA also requires that employers provide adequate notice to a job applicant before taking an adverse action, such as not hiring the job applicant, because of the information in a background check. This lawsuit alleges that Target did not provide adequate notice to job applicants before taking an adverse action. Target denies that it did anything wrong and maintains that it complied with the FCRA at all times. In May 2016, a federal court in Minnesota ruled in Target s favor on the claim challenging the content of Target s disclosure form. The decision was appealed, but the parties agreed to this Settlement before the appeals court considered the case. No court has yet decided whether Target s procedure for providing notice to a job applicant prior to taking an adverse action based on the results of a background check did or did not comply with the FCRA. There has been no final court decision as to which side of the dispute is correct, and both sides disagree on how much money, if any, would have been awarded if there had been a verdict against Target. Instead of litigating the case to trial, both sides agreed to this Settlement to resolve the dispute. 3. The Settlement Classes. The lawsuit and Settlement affect two Classes of individuals: those on whom Target obtained a background check based on the challenged disclosure form alone, and those who were not employed, promoted, or transferred as a result of the background check report. The records indicate that you are a member of both classes. Class One: You are a member of Class One if you fit within this definition: All internal and external applicants for employment, transfer, or promotion on whom Target obtained a background check report for employment purposes beginning November 13, 2010, through November 13, 2016, who executed the Consent & Disclosure Form available at or a form substantially similar. Class Two: You are also a member of Class Two if you fit within this definition: All internal and external applicants for employment, promotion, or transfer on whom Target obtained a background check report for employment purposes beginning March 17, 2012, through June 13, 2016, who were not employed, promoted, or transferred by Target because of the background check report. 2

3 Finally, you are excluded from both Classes if you are counsel of record in the lawsuit, employed by the law firms of counsel of record, the presiding judge in the lawsuit and his staff, or members of the immediate families of anyone who falls within these categories. 4. The Terms of the Settlement. As part of the Settlement, Target has agreed to the entry of an injunction ordering non-monetary, programmatic relief, including revisions to its policies and practices related to obtaining and using background checks for employment purposes: Target has removed from its various disclosure forms the language characterized by the Named Plaintiffs as extraneous, and has implemented a new, simplified Consent & Disclosure Form. Target has changed the procedures it follows prior to taking an adverse action based on the results of a background check, including the content of the notices required by FCRA and the timing of sending these notices. Target has also agreed to establish a Settlement Fund of $8.5 million to provide for individual monetary payments to members of Class Two. A portion of the Settlement Fund will be divided and paid out in checks of about $70 to each member of Class Two who does not opt out of the settlement. Class Two members do not need to do anything to receive that payment. Additionally, the Settlement Fund will make an additional payment of up to $1,500 to any Class Two member who submits a Claim Form stating that s/he suffered actual harm as a result of Target s alleged violation of FCRA s requirement that an employer provide adequate notice before taking an adverse action based on the results of a background check. 5. How to Proceed: Your Options. You have three options. You must decide at this stage whether you want to: (A) do nothing, remain a member of both Classes, receive a monetary award of about $70 from the Settlement Fund, and have the opportunity to submit a Claim Form seeking an additional monetary award of up to $1,500 for actual damages; (B) opt out and exclude yourself from Class Two only; or (C) object to the Settlement as a member of both Classes or as a member of Class One only if you have opted out and excluded yourself from Class Two. Option A: Do Nothing and Remain in the Settlement You do not need to do anything to remain in the Settlement. If you do not request to be excluded, you will remain a part of both Settlement Classes. The Court will hold a Final Approval Hearing and you, as a member of the Settlement Classes, will be represented by Class Counsel at no cost to you. If the Court gives final approval to the Settlement: The injunction ordering non-monetary programmatic relief will be entered. As a member of Class Two, you will be sent a check of about $70 from the Settlement Fund, as well as have the opportunity to submit a Claim Form seeking in addition to the $70 check another payment of up to $1,500. The Claim Form must state that you suffered actual damages as a result of Target s alleged violation of FCRA. Detailed instructions on how to submit a Claim Form for an additional payment will accompany the $70 check. 3

4 You will release and waive your claims against Target arising under FCRA or any similar state or local law governing background checks that arose up to and including the date of Final Approval of the Settlement. Option B: Opt Out and Exclude Yourself from Class Two Only You may request to opt out, or be excluded, from Class Two, but not from Class One. If you opt out of Class Two, you will not be eligible for any monetary award as part of this Settlement, including the check of about $70. Any Member of Class Two who wishes to opt out must mail a written, signed statement that s/he is opting out of Class Two to the Settlement Administrator, at the address listed below. To be effective, this opt out statement must be postmarked on or before October 27, 2017, and must include the following information: Your original signature; Current postal mailing address; Current telephone number; Date of birth; and A specific statement that you want to be excluded from Class Two. The address of the Settlement Administrator is: Freckleton v. Target Settlement c/o Settlement Administrator P.O. Box 1607 Blue Bell, PA Any Settlement Class Member who submits a timely and valid request for exclusion from Class Two will have no right to object to the Settlement in Court as a member of Class Two. You may not opt out of Class One. As such, even if you opt out of Class Two, you will retain the right to object to the Settlement in Court as a member of Class One. Option C: Object to the Settlement The Court must assess the overall fairness and reasonableness of the Settlement to the Settlement Classes. Settlement Class Members who have not opted out of Class Two may object to the Settlement. Settlement Class Members who have opted out of Class Two may object to the Settlement, but only as members of Class One. In order to have your objection to the Settlement considered by the Court or to speak at the Final Approval Hearing, you must submit to the Court a written objection to the Settlement. If you file an objection, you must set forth: (a) the name of the litigation; (b) your full name, address and telephone number; (c) all grounds for objection, accompanied by any legal support for the objection known to you or your counsel; (d) the number of times in which the objector has objected to a class action settlement within the five years preceding the date that the objector files the objection, the caption of each case in which the objector has made such objection, and a copy of any orders related to or ruling upon the objector s prior such objections that were issued by the trial and appellate courts in each listed case; 4

5 (e) the identity of all counsel who represent you, including any former or current counsel who may be entitled to compensation for any reason related to the objection to the Settlement or fee application; (f) any and all agreements that relate to the objection or the process of objecting whether written or oral between objector or objector s counsel and any other person or entity; (g) the identity of all counsel representing you who will appear at the Final Approval Hearing; (h) a list of all persons who will be called to testify at the Final Approval Hearing in support of the objections; (i) a statement confirming whether you and/or your counsel intend to personally appear and/or testify at the Final Approval Hearing; and (j) your signature (an attorney s signature is not sufficient). Objections must be in writing, signed, filed with the Court (with copies served on Class Counsel and Counsel for Target, at the addresses listed below); and must be filed on or before October 27, 2017 (although they may be supplemented up to December 1, 2017, with regard to objections to Class Counsel s request for attorneys fees). You do not need to be represented by separate counsel to object to the Settlement. However, any lawyer who intends to appear at the Final Approval Hearing must enter a written Notice of Appearance of Counsel with the Clerk of Court no later than the date set by the Court in its Preliminary Approval Order and shall include the full caption and case number of each previous class action case in which that counsel has represented an objector. The address of the Clerk of Court is: The address of Class Counsel is: The address of Counsel for Target is: Office of the Clerk U.S. District Court for the District of Maryland, Baltimore Division 101 West Lombard Street Baltimore, MD James A. Francis FRANCIS & MAILMAN, P.C. 100 South Broad Street, Suite 1902 Philadelphia, PA info@consumerlawfirm.com Donald M. Lewis NILAN JOHNSON LEWIS PA 120 South 6th Street, Suite 400 Minneapolis, MN Release in the Event of Final Approval of the Settlement. Regardless of whether you opted out of Class Two, you will release your right to pursue or participate in a class, collective, or mass action against Target with regard to any claim under federal, state, or local law challenging the disclosure provided or authorization obtained by Target to procure a background check on you that arose up to and including the date of Final Approval of the Settlement. 5

6 If you did not validly opt out of Class Two, you will also release Target from all claims under FCRA or any similar state or local law governing background checks that arose up to and including the date of Final Approval of the Settlement. You will be covered by the release if you belong to Class Two, even if you do not receive or cash the $70 check or submit a Claim Form. If you have opted out of Class Two, you will not release or waive your right to pursue an individual claim against Target. 7. Tax Consequences for Payments. There may be tax consequences for any payment that you receive from the Settlement Fund. Class Counsel urges you to consult with your tax advisor or preparer for answers to any question that you may have about the tax implication of any payment. 8. The Lawyers and Named Plaintiffs representing you and the Settlement Classes. The Court has approved three law firms to represent you as Class Counsel: Francis & Mailman, P.C., of Philadelphia, PA; Langer Grogan & Driver, P.C., of Philadelphia, PA; and Gordon, Wolf & Carney, CHTD., of Towson, MD. You do not have to pay Class Counsel or any other lawyer to participate in the Settlement. Instead, the three law firms are asking the Court for attorneys fees and costs as part of the proposed Settlement, which would be paid by Target. You may hire your own lawyer to appear in Court for you, but at your own expense. Charmaine Freckleton and Thomas J. Just are the Named Plaintiffs. The Court has accepted both of them as the Class Representatives for Class One and Ms. Freckleton as the Class Representative for Class Two. Settlement Class Members will continue to be represented by Class Counsel in connection with the implementation and monitoring of both the non-monetary, programmatic relief and monetary provisions of the Settlement at no cost to Settlement Class Members. If you opt out of the monetary provisions of the Settlement, Class Counsel will not represent you as to the monetary relief provisions of the Settlement, but will continue to represent you as to the non-monetary, programmatic relief provisions of the Settlement. Although it is not necessary, you may if you wish retain your own attorney at your own expense. How Will the Lawyers Be Paid? Class Counsel have pursued these claims on behalf of the Named Plaintiffs and the Settlement Class without receiving any compensation for their services or reimbursement of the litigation expenses they incurred. If you are a Settlement Class Member and receive an award from the Settlement Fund, you will not owe any fees or expenses to the lawyers who have represented you as part of the Settlement Class. Class Counsel will ask the Court to award them attorneys fees and expenses of not more than 33% of the Settlement Fund. The Court will decide how much to award Class Counsel for fees and expenses, which will be paid from the Settlement Fund. How Will the Named Plaintiffs Be Paid? As a Class Member, you have also been represented in this litigation by Named Plaintiffs Charmaine Freckleton and Thomas J. Just. The Named Plaintiffs will participate in the Settlement claims process just like any other Settlement Class Member. In addition, Class Counsel will ask the Court to grant 6

7 service awards up to $3,900 for each of the Named Plaintiffs. This recognizes the benefits the Named Plaintiffs achieved for the Classes, the risks they faced in bringing the case, and the time they spent pursuing it. 9. The Final Approval Hearing. The Court will hold the Final Approval Hearing on the Settlement at 9:30 a.m. on December 8, 2017, in the courtroom of The Honorable George L. Russell, III, United States District Judge for the District of Maryland, 101 West Lombard Street, Baltimore, MD At this hearing, the Court will determine whether the proposed Settlement is fair, reasonable, and adequate and whether it should be approved. The Court will also consider the amount of fees and expenses to award to Class Counsel and the amount of the service awards to grant to the Named Plaintiffs, and whether, in accordance with the Settlement, an order and judgment should be entered bringing the lawsuit to an end. Do I Have to Come to the Final Approval Hearing? No. You are not required to appear at the hearing, but you are welcome to come at your own expense. Class Counsel will appear at the hearing on behalf of all Settlement Class Members, at no cost to you. If you file an objection, you do not have to come to Court to talk about it. As long as you are a member of the Settlement Classes, you did not opt out, and you filed your written objection on time, the Court will consider it. You may also pay your own lawyer to attend, but it is not necessary. If the Court gives final approval of this Settlement, the Court s judgment will be final and binding on all Settlement Class Members who have not timely opted out. 10. Getting More Information. If you have further questions or still are not sure whether you are included in the Settlement Class, you can get free help at the website established for the Settlement, or by calling the Settlement Administrator at This Notice contains only a summary of the terms of the Settlement and related matters. For further information, the Settlement Agreement (which includes the complete terms of the Settlement), and numerous other documents connected with the Settlement are available for review and/or downloading at Please do not call or contact the Court, the Clerk of Court, counsel for Target, or Target with questions regarding this Notice or the Settlement. 11. Dates and Deadlines. Again, the important dates and deadlines are: Last Day to Opt Out of the Settlement Class: October 27, 2017 Last Day to Object to the Settlement: October 27, 2017 Last Day to Supplement Objection Regarding Request for Attorneys Fees: December 1, 2017 Final Approval Hearing: December 8, 2017 at 9:30 a.m. 7

8 Freckleton v. Target Settlement c/o Settlement Administrator P. O. Box 1607 Blue Bell, PA PRESORTED FIRST CLASS MAIL U.S. POSTAGE PAID CLAYSBURG, PA PERMIT #6