Background screening lawsuit can proceed, N.J. judge rules

Arizona risk management company Early Warning Services must face a lawsuit accusing it of violating the Fair Credit Reporting Act by failing to disclose that it wrongly reported former bank employees as having been fired for fraud, a federal judge ruled.

In a decision on Friday, U.S. District Judge Stanley Chesler in New Jersey rejected Early Warning's motion to dismiss the lawsuit, saying individuals have a statutory right to the information the company reports so they can dispute any errors. FULL STORY BY SUBSCRIPTION ONLY.