The Case That Sparked the Settlement
The lawsuit was filed in 2023 by Vidal McDowell, who alleged he lost a job after PeopleFacts incorrectly reported that he had been convicted of murder and felony weapons charges. McDowell had overturned those convictions on appeal, but the background check still showed them as active.
He further alleged that PeopleFacts never notified him at the time it transmitted the damaging report to his prospective employer, a step required under the FCRA whenever adverse public record information is shared.
Attorney Fees and Legal Complexity
McDowell’s attorneys—Morgan & Morgan PA and Consumer Litigation Associates—have requested $800,000 in legal fees from the $2.4 million fund.
The firms argued the case was unusually complex because the FCRA provisions at issue are rarely litigated. To prevail, the class would have needed to prove willful violations, a high bar that McDowell’s counsel said was “no easy task.”
They also noted PeopleFacts was prepared to challenge both McDowell’s individual standing and that of absent class members—issues they described as “make or break” for the entire case.
