On December 5, 2022, a class action lawsuit was filed in a Florida federal court that claims a ridesharing company and its third-party background screening provider violated the Fair Credit Reporting Act (FCRA) by approving drivers using stolen identities after failing to properly screen them with background checks, according to a copy of the complaint on ClassAction.org.
The lawsuit states that the plaintiff learned the ridesharing company had filed a 1099-NEC (Non-Employee Compensation) using his name and Social Security Number (SSN) even though he had never worked for the company. Suspecting that a driver for the ridesharing company had stolen his identity, the plaintiff asked the company to cease all accounts using his information.
The lawsuit alleges the ridesharing company and its third-party background screening provider negligently hired a driver who applied with a stolen identity. The lawsuit also claims the defendants “willfully violated” the FCRA by failing to notify the plaintiff that he was the subject of a background check and leaving him no chance to prevent the identity theft from occurring.
“The Defendants systematically violate section 1681b(b)(3) of the FCRA by ordering and/or preparing consumer reports without, beforehand, providing the person who is the subject of the report sufficient and timely notification and a copy of the report and a summary of rights under the FCRA,” claims the 30-page lawsuit filed in the U.S. District Court Southern District of Florida.
The lawsuit also claims that reports of prospective drivers using false identities to obtain employment with the ridesharing company have “become commonplace, as many of these drivers would be unable to become drivers due to their prior criminal history, unsatisfactory driving record, immigration status, or lack of credit worthiness, among other things.”
As a result, innocent people such as the plaintiff have become victims of the defendants “and are left with no choice but to deal with the consequences.” The class action lawsuit seeks to represent anyone who has been a victim of identity theft by a driver for the ridesharing company that resulted in the use of that person’s identity to work for the company.
The ridesharing company named in the lawsuit released a U.S. Safety Report for 2019 and 2020 in June of 2022 that revealed more than 500,000 prospective drivers did not pass its background check process while more than 80,000 drivers were removed from its rideshare application due to continuous background checks during the years 2019 and 2020.
ClearStar is a leading Human Resources technology company that is the “clear choice” for background checks, drug testing, and occupational health screening. ClearStar offers contractor screening for employers that uses the innovative ClearID on-the-spot facial-recognition-based identity validation via mobile devices. For more information, contact ClearStar.
NOTE: ClearStar reminds readers that allegations made in class action lawsuits are not proof a business or individual violated any law, rule, or regulation since they are in the pleading stage with no factual adjudications yet.
© 2022 ClearStar. All rights reserved. – Making copies of or using any part of the ClearStar website for any purpose is prohibited unless written authorization is first obtained from ClearStar. ClearStar does not provide or offer legal services or legal advice of any kind or nature. Any information on this website is for educational purposes only.
Let's start a conversation
Thomas Ahearn - Digital Content Editor
Thomas Ahearn is a Digital Content Editor at ClearStar, a leading Human Resources (HR) technology company specializing in background checks, drug testing, and occupational health screening. He writes about a variety of topics in the background screening industry including "Ban the Box," class action lawsuits, credit reports, criminal records, drug testing, the Equal Employment Opportunity Commission (EEOC), the Fair Credit Reporting Act (FCRA), HR technology, identity theft, privacy, social media screening, and workplace violence.
At ClearStar, we are committed to your success. An important part of your employment screening program involves compliance with various laws and regulations, which is why we are providing information regarding screening requirements in certain countries, region, etc. While we are happy to provide you with this information, it is your responsibility to comply with applicable laws and to understand how such information pertains to your employment screening program. The foregoing information is not offered as legal advice but is instead offered for informational purposes. ClearStar is not a law firm and does not offer legal advice and this communication does not form an attorney client relationship. The foregoing information is therefore not intended as a substitute for the legal advice of a lawyer knowledgeable of the user’s individual circumstances or to provide legal advice. ClearStar makes no assurances regarding the accuracy, completeness, or utility of the information contained in this publication. Legislative, regulatory and case law developments regularly impact on general research and this area is evolving rapidly. ClearStar expressly disclaim any warranties or responsibility or damages associated with or arising out of the information provided herein.
