$2.4M PeopleFacts Settlement Ends Lawsuit Over Alleged Employment Background Check Violations

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PeopleFacts has agreed to pay a $2.4 million settlement to resolve a class action lawsuit that alleged the background screening company unlawfully failed to provide timely notice to consumers when reporting data that might negatively impact their employment prospects.

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The court-approved website for the PeopleFacts class action settlement can be found at PeopleFactsFCRAClassAction.com.

The deal with Pluto Acquisition Opco, which does business as PeopleFacts, covers a class of 21,047 individuals in the United States who, between November 7, 2021 and June 6, 2025, were the subject of a background check furnished by PeopleFacts that included criminal history entries (misdemeanor or higher) and who were not provided notice at the time of the consumer report.

According to the official PeopleFacts settlement website, eligible class members are entitled to receive a pro-rated share of the $2,400,000 fund. While cash payments are estimated to be $85 per person, final payout amounts will depend on the total number of class members, the settlement agreement says.

Consumers do not need to do anything to receive a PeopleFacts settlement payout.

The class action settlement website relays that PeopleFacts settlement payments will be mailed automatically within 14 days following the date the deal receives final approval from the court.

The lawsuit against PeopleFacts claimed the company fell short of its legal obligations under the federal Fair Credit Reporting Act (FCRA) with regard to issuing consumer reports for employment purposes. Specifically, the class action alleged that PeopleFacts violated the FCRA by failing to properly notify consumers when it was furnishing adverse information, and by failing to obtain requisite certifications from the end-user prior to issuing a consumer report.

As part of the PeopleFacts settlement, the company has agreed to review its procedures and make certain changes to comply with these requirements, the agreement states.

The PeopleFacts class action settlement received preliminary court approval on June 6, 2025. A final approval hearing is set for October 20, 2025.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest open class action settlements.