Taylor v. Inflection Risk Solutions, LLC – Inaccurate Background Checks Settlement

In 2022, Berger Montague obtained a $4,000,000 settlement on behalf of people who had been inaccurately reported as committing violent crimes or felonies which were actually misdemeanors under Minnesota law by Inflection Risk Solutions, LLC, a company that sold background checks to companies, such as AirBNB. 

The case was brought by named plaintiff Tony Taylor. Mr. Taylor, who was licensed to carry a firearm, had previously plead guilty to carrying a weapon into a courthouse, specifically Minneapolis City Hall, which houses the small claims court.  Mr. Taylor was convicted of a felony and successfully completed his probation without a prison sentence.  Under Minnesota law, felony convictions are downgraded to misdemeanors when the imposition of a prison sentence is stayed and the defendant successfully completes probation without a prison sentence.  

When Mr. Taylor later tried to rent an apartment through AirBNB, he was shocked when he was denied the apartment and permanently barred from the AirBNB platform. Mr. Taylor found out he had been denied and barred because Inflection had issued a background report on him that stated he had been convicted of a felony with an “Offense Class” of “violence.”  This report was inaccurate.  Mr. Taylor’s conviction involved no violence at all and by the time of his application, his conviction had been deemed a misdemeanor.  Mr. Taylor was extremely distressed and disturbed regarding the inaccurate reporting, and was concerned that it could reoccur in the future when he was applying for a job or another rental.  

Mr. Taylor worked with Berger Montague to file a class action lawsuit against Inflection on behalf of all the people that Inflection inaccurately reported as having been convicted of a felony when the felony had been deemed a misdemeanor under Minnesota law.  He also sought to represent a class of people who had been convicted of crimes that Inflection inaccurately characterized as involving “violence.” Mr. Taylor alleged that Inflection committed multiple willful violations of the Fair Credit Reporting Act. Particularly, he alleged that Inflection failed to use reasonable procedures to assure the maximum possible accuracy of its consumer reports. 

Berger Montague fought on behalf of  Mr. Taylor and the classes for nearly two years. In the end, Berger Montague was able to reach a settlement with Inflection for $4 million on behalf of nearly 40,000 people. The result is believed to be the largest Fair Credit Reporting Act settlement in the history of Minnesota. In addition, Inflection agreed to change its practices in an effort to make sure the same errors did not happen again.

Mr. Taylor and the classes were represented by Berger Montague attorneys Michelle Drake, John Albanese, and Ariana Kiener, along with co-counsel John Goolsby of the Goolsby Law Office, LLC.

The Damaging Effects of an Inaccurate Background Check

Thousands of people fall victim to inaccurate background checks every year, through no fault of their own. Damaging information in a background report can harm your reputation and cause embarrassment, while also causing problems such as having a rental application rejected, a loss of a job, and other adverse effects.  

The Fair Credit Reporting Act requires that the businesses that provide background checks must use maximum possible accuracy when doing so to avoid damaging the good names of consumers. But problems happen when automated processes are used, records are not updated, and when background check companies use their own classifications to characterize offenses rather than accurately reporting the public records. 

Berger Montague fights for innocent people that have been recklessly defamed in inaccurate background reports. If you have been damaged by false information on your credit report or background report, contact us today for a free consultation on how to pursue relief.