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Moorhead v. HKA Enterprises, LLC

United States District Court, D. South Carolina, Spartanburg Division

August 6, 2019

JOSEPH MOORHEAD, individually and on behalf of all others similarly situated, Plaintiff,
v.
HKA ENTERPRISES, LLC, Defendant,

          ORDER (1) PRELIMINARILY APPROVING CLASS ACTION SETTLEMENT, (2) APPROVING NOTICE PLAN, AND (3) SETTING FINAL APPROVAL HEARING

          DONALD C. COGGINS, JR. UNITED STATES DISTRICT JUDGE

         This matter having come before the Court on Plaintiffs' motion for preliminary approval of the proposed class action settlement of the above-captioned case (the “Action”) between Plaintiff Joseph Moorhead, individually and on behalf of the Settlement Class (“Plaintiff”), and Defendant HKA Enterprises, LLC (“Defendant”) as set forth in the Parties' Settlement Agreement and Release (the “Agreement, ” which memorializes the “Settlement”). Having duly considered the papers, THE COURT HEREBY FINDS AND ORDERS AS FOLLOWS:

1. The Court has jurisdiction over the subject matter of the litigation, the Parties, and all Settlement Class Members.
2. Unless defined herein, all defined terms in this Order shall have the meanings ascribed to them in the Agreement.
3. The Court has conducted a preliminary evaluation of the Settlement as set forth in the Agreement for fairness, adequacy, and reasonableness. Based on that evaluation, the Court finds there is cause to believe that: (i) the Agreement is fair, reasonable, and adequate, and within the range of possible approval; (ii) the Agreement has been negotiated in good faith at arms-length between experienced attorneys familiar with the legal and factual issues of this case; and (iii) with respect to the forms of notice of the material terms of the Agreement to Settlement Class Members for their consideration and reaction, that notice is appropriate and warranted. Therefore, the Court grants preliminary approval of the Settlement.
4. The Court, pursuant to Rule 23(a) and Rule 23(b)(3) of the Federal Rules of Civil Procedure, conditionally certifies, for purposes of this Settlement only, the following Settlement Classes:
Class A:
All natural persons residing within the United States and its Territories with respect to whom, within seven years prior to the filing of this action and extending through the resolution of this action, HKA procured or caused to be procured a consumer report for employment purposes based on a disclosure form from one or more of the following background check vendors: AWSI, Backgroundchecks.com, ESS, and GIS. The parties agree that there are 3, 634 members of Settlement Class A as identified by HKA.
Class B:
All natural persons residing within the United States and its Territories: (1) within seven years prior to the filing of this action and extending through the resolution of this action; (2) who were the subject of a background report procured or caused to be procured by HKA based on a disclosure form other than that from the following background check vendors: AWSI, Backgroundchecks.com, ESS (the vendor applicable to Moorhead), and GIS; (3) that was used to make an adverse employment decision regarding such employee or applicant for employment; and (4) who HKA failed to notify of a forthcoming adverse action and/or failed to provide the applicant an understandable copy of his or her consumer report or a copy of the FCRA summary of rights before it took such adverse action. The parties agree that there are 68 individuals who are members of Settlement Class B as identified by HKA.
Class C:
All natural persons residing within the United States and its Territories: (1) within two years prior to the filing of this action and extending through the resolution of this action; (2) who were the subject of a background report procured or caused to be procured by HKA based on a disclosure form from one or more of the following background check vendors: AWSI, Backgroundchecks.com, ESS (the vendor applicable to Moorhead), and GIS; (3) that was used to make an adverse employment decision regarding such employee or applicant for employment; and (4) who HKA failed to notify of a forthcoming adverse action and/or failed to provide the applicant an understandable copy of his or her consumer report or a copy of the FCRA summary of rights before it took such adverse action. The parties agree that there are 73 individuals who are members of Settlement Class C as identified by HKA.

         5. The Court appoints Meyer Wilson Co., LPA, Semnar & Hartman, LLP, and Dave Maxfield, Attorney, LLC as Class Counsel, pursuant to Rule 23 of the Federal Rules of Civil Procedure for purposes of this Settlement only.

         6. The Court hereby appoints Joseph Moorhead as Class Representative of the Settlement Classes pursuant to Rule 23 of ...


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