Overly-Broad Background Checks Willfully Negligent, Suit Claims

LexisNexis Screening Solutions says it followed industry standards when it ran a background check for a job applicant without using his middle name. But this applicant, David Smith, shares a name with approximately 125,000 other people in the United States, and in this case LexisNexis told the employer that the applicant was a convict, when in fact that was another David Smith. Smith said he had to produce his first, middle, and last name, as well as Social Security number, driver’s license number, date of birth, sex, street address, and phone number for the background check. LexisNexis ran a search using only first name, last name, and date of birth. Failing to run his middle name, Alan, constitutes willful negligence, and a violation of the Fair Credit Reporting Act, Smith says in a lawsuit. On top of that, being delayed in getting the job due to the background check bungle put Smith “down in the dumps.” A federal jury awarded Smith $75,000 in compensatory damages, and $300,000 in punitive damages. The trial judge reduced the punitive damages to $150,000.