Walmart’s Motion to Decertify Class Granted in Background Check Case

On Oct. 18, a class of approximately 6.5 million Walmart applicants was decertified by a California federal judge based on the determination that the named plaintiffs had failed to allege an injury sufficient to meet the Spokeo standing bar.

In January, 2019, U.S. District Judge David O. Carter certified a class comprised of millions of Walmart job applicants who collectively alleged that the company had committed Fair Credit Reporting Act and California's Investigative Consumer Reporting Agency Act violations. The basis of the allegation was that Walmart had not provided applicants with sufficient background check disclosure forms between June 2012 and March 2019.

Early on in the litigation process, the judge determined that the plaintiffs had sufficiently met the Article III standing bar in Spokeo v. Robins as established by the U.S. Supreme Court. As the case progressed, it would become the plaintiffs' burden to assert concrete injury and not simply a statutory violation. As the dispute proceeded to summary judgment phase, the plaintiffs were charged with supplying more "specific facts" to establish standing as opposed to the base allegations that had previously been sustaining the class's status and case. The class decertification occurred as a result of the judge determining that the named plaintiffs failed to provide more concrete proof as was required. According to the judge's written order, the "named plaintiffs have failed to identify an injury stemming from this statutory violation that can suffice to support Article III standing."

Judge Carter referenced the Spokeo dispute in reaching his determination, which similarly involved alleged FCRA violations. The judge noted that the Supreme Court refrained from establishing standing based solely on procedural violation, requiring that concrete injury must be proven as well. In both cases, the plaintiffs alleged only bare procedural violations.

Walmart argued for summary judgement in its favor by the district court; however, Judge Carter ruled that whether the plaintiffs could establish standing or certify as a class under the California law standards still remained to be addressed, ultimately concluding that, "the court will accordingly allow the state court, in the exercise of its proper parallel jurisdiction, to determine whether plaintiffs have standing under California law." As such, the Walmart dispute returns to Orange County Superior Court, where the case was originally filed in June 2017.

Posted: October 25, 2019

All Rights Reserved © 2019 Certiphi Screening, Inc.
This document and/or presentation is provided as a service to our customers. Its contents are designed solely for informational purposes, and should not be inferred or understood as legal advice or binding case law, nor shared with any third parties. Persons in need of legal assistance should seek the advice of competent legal counsel. Although care has been taken in preparation of these materials, we cannot guarantee the accuracy, currency or completeness of the information contained within it. Anyone using this information does so at his or her own risk.

Thank you for your interest in Business Information Group. We have received your message and will contact you in one business day or less.
Something went wrong. Try again
You have exceeded the number of attempts to submit this form. As a result, your IP address has been temporarily blocked.
Something went wrong. Try again

Get In Touch

Send a Message *fields required

What are your Interests?optional

Even our RFP PROCESS is state-of-the-art.

Find out why

What Our Clients Are Saying

Everyone I have contacted at Certiphi has been a complete pleasure to work with. The Certiphi customer service rivals every other customer service I come in contact with. Everyone is always so professional, yet super nice! Thanks for all you do and keep up the amazing work and impeccable service that you provide!!!

Human Resources Assistant
Large Medical Staffing Firm

Thank you so much! You have such an incredible reputation within our office; I think we would all say your customer service levels are continually at about 125%!

Human Resources Generalist
Medical and Surgical Hospital

The response time has been very quick. The turnaround times are great. I love your systems and that I can go in and look at the process as its going.

Human Resources Manager
Medical Staffing Agency

It’s such a great customer service that you provide and I’m happy to tell that to anyone.

Pastoral Care Associate
Large Children's Hospital

Working with Certiphi has been such a pleasure. Certiphi has taught me so much, not just about backgrounds but also the meaning of great business.

Human Resources Specialist
Large Medical Staffing Firm

We flew through our NCQA licensure review.  We very much appreciate Certiphi's help in earning a 100% score for the files!

Accreditation Manager
Hospital System Analytics Company

You are about to leave

Ok, Continue Cancel