ULISES GONZALEZ vs. CAREER STRATEGIES, INC. & CAREER STRATEGIES TEMPORARY, INC.

A Settlement has been reached in a class action lawsuit that was brought on behalf of a class of people defined as “all persons on whom Defendants obtained a consumer report for employment purposes between April 27, 2016 and May 13, 2021."

You received the notice because Career Strategies’ records indicate that you are a member of this class.

In this class action lawsuit, Plaintiff alleges on behalf of himself and a putative nationwide class the following claims against Defendant (1) violation of 15 U.S.C. §§ 1681b(b)(2)(A) (Fair Credit Reporting Act). If the case proceeded, Plaintiff may also have alleged violations of California’s Investigative Consumer Reporting Agencies Act (ICRAA), California’s Consumer Credit Reporting Agencies Act (CCRAA), and California’s Unfair Competition Law (UCL). The class action lawsuit asserts claims for statutory damages, punitive damages, restitution, injunctive and equitable relief, and attorneys’ fees and costs.

Career Strategies denies Plaintiff’s claims, and asserts that it has complied with all of its legal obligations to applicants and its employees.  If a Settlement had not been reached, Career Strategies would have vigorously defended itself against the lawsuit and was confident that it would have prevailed.

No. The Court has made no decision regarding the merits of Plaintiff’s allegations or Defendants’ defenses.

The Parties reached a Settlement in order to avoid the risk and expense of further litigation. Plaintiff and his attorneys believe the Settlement is fair, adequate and in the best interest of the class members to whom it applies given the outcome of their investigation, the consumption of time and resources required in connection with further litigation, and the uncertainty in the law governing some of the claims presented. Although Defendants dispute Plaintiff’s claims and assert they has complied with all of their legal obligations towards applicants and  employees, Career Strategies has also concluded that further litigation would be protracted, expensive, and would also divert resources and management and employee time. 

Subject to final Court approval, Defendants will pay $2,000,000.00 (the Gross Settlement Amount) for: (a) Settlement Payments to Participating Class Members; (b) the Court-approved Class Counsel’s fees and costs; (c) the Court-approved Service Payment to the Class Representative; and (d) the Settlement Administration Costs. 

Participating Class Member Settlement Payments. After deductions from the Gross Settlement Amount for attorneys’ fees and costs, the Service Payment to the Class Representative, and the Settlement Administration Costs, there will be a Net Settlement Amount.  From the Net Settlement Amount, Defendant will make a payment (Settlement Payment) to each Class Member who does not opt out of the Settlement Class on an equal pro rata share of the Net Settlement Amount. Any payments which are not cashed shall be transmitted to Homeboy Industries.   

While the precise amount of your Settlement Payment is not known at this time, if Career Strategies procured or caused to be procured a background check on you from April 27, 2016 through May 13, 2021, your estimated Settlement Payment is $37.95.

None of the Parties or attorneys makes any representations concerning the tax consequences of this settlement or your participation in it. Class Members should consult with their own tax advisors concerning the tax consequences of the settlement. Class Counsel is unable to offer advice concerning the state or federal tax consequences of payments to any Class Member.

If Notice to a Class Member was returned as undeliverable, and if the Settlement Administrator cannot locate a valid address for a Class Member with reasonable efforts, the Class Member will not be mailed a check and the money that would have gone to that Class Member will be redistributed to the other Participating Class Members whose Notices were not returned as undeliverable. 

Class Counsel Attorneys’ Fees and Costs, Service Payment to Class Representative, and Administrative Costs. Class Counsel will ask the Court for an award of reasonable attorneys’ fees up to one-third of the Gross Settlement Amount and reasonable litigation costs. Call Counsel will also ask the Court to authorize a service payment to Class Representative in an amount not to exceed $5,000.00 in addition to the Class Representative’s portion of the Net Settlement Amount. The costs of administering the Settlement are estimated to be $64,197.00.

If you wish to receive a payment under the terms of this Settlement, you do not have to do anything. However, it is advisable to confirm your current mailing address with the Settlement Administrator in order to ensure you receive your settlement share.  You will be covered by the release summarized in Section 7.

Upon Final Approval by the Court, Plaintiff and each member of the Settlement Class shall fully and finally compromise, release, resolve, relinquish, and discharge the Released Parties, which is defined in the Settlement and includes Defendants CAREER STRATEGIES, INC., and CAREER STRATEGIES TEMPORARY, INC., as well as their predecessors, successors, parents, subsidiaries, affiliates, officers, directors, attorneys, insurers, and assigns, from any and all claims, debts, liabilities, demands, obligations, penalties, guarantees, costs, expenses, attorneys’ fees, interest, damages, actions or causes of action that such individuals have or could have alleged in, or arising out of the facts asserted in, the operative complaint under: 15 U.S.C. § 1681b of the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. §§ 1681d and 1681g of the FCRA, California Civil Code Section 1786, et seq. (the Investigative Consumer Reporting Agencies Act (“ICRAA”)), California Civil Code Section 1785, et seq. (the Consumer Credit Reporting Agencies Act (“CCRAA”)), California Business & Professions Code section 17200, et seq. (the Unfair Competition Law (“UCL”)), and similar claims under the law of any other State.

If you do not wish to participate in the Settlement, you may opt out of the Settlement – i.e., exclude yourself from it­ – by submitting a Request for Exclusion. If you opt out of the Settlement by doing so, you will receive no money from the Settlement, and you will not be bound by its terms.

To opt out, you must submit a Request for Exclusion by First-Class Mail postmarked no later than June 14, 2023.

A Request for Exclusion is a letter or written request to the Settlement Administrator that includes: (1) your name; (2) your signature; (3) only the last four digits of your Social Security Number; and (4) the following statement, or something similar to: “I request to be excluded from the class action proceedings in the matter of Gonzalez v. Career Strategies, Inc., et. al., Case No. 21STVC25613 pending in the California Superior Court, County of Los Angeles.”

If you do not submit a valid and timely executed Request for Exclusion (as evidenced by the postmark,) your Request for Exclusion will be rejected, and you will be a member of the Settlement Class and will be bound by all the terms of the Settlement and any judgment entered once the Settlement is finally approved by the Court.

The address for the Settlement Administrator is Gonzalez v Career Strategies, PO Box 23668, Jacksonville, FL 32241-3668.

If you have not submitted a Request for Exclusion and believe the Settlement should not be finally approved by the Court for any reason, you may object to the Settlement. To object to the Settlement in writing, you must submit by First-Class Mail a written objection to the Settlement Administrator postmarked by June 14, 2023 that includes: (1) your name; (2) your signature; (3) only the last four digits of your Social Security Number; (4) the reasons for the objection; (5) whether you intend to appear at the Final Approval Hearing; and (6) identification of the case: Gonzalez v. Career Strategies, Inc., et. al., Case No. 21STVC25613 pending in the California Superior Court, County of Los Angeles.”

The Settlement Administrator shall forward copies of any written objections to Class Counsel and Defendant’s Counsel within three (3) days of receipt. Class Counsel shall submit copies of any objections received to the Court in conjunction with the filing of the motion for Final Approval of the Settlement.

However, even if you do not timely submit a written objection using the above procedure, you may still submit an objection directly to the Court by appearing at the Final Approval Hearing.

The address for the Settlement Administrator is Gonzalez v Career Strategies, PO Box 23668, Jacksonville, FL 32241-3668.

Even if you submit an objection, you will be bound by the terms of the Settlement unless the Settlement is not finally approved by the Court.

You do not need to hire your own lawyer, because Class Counsel is working on your behalf. However, if you want your own lawyer, you are free to hire one at your own expense.

The Settlement has only been preliminarily approved by the Court. The Court will hold a hearing in Dept. 11 of the Los Angeles County Superior Court, located at 312 N. Spring Street, Los Angeles, CA 90012, on July 25, 2023, at 9:00 A.M. (Pacific Time), to consider any objections and determine whether the settlement should be finally approved as fair, reasonable, and adequate. The Court will also be asked to approve Class Counsel’s requests for attorneys’ fees and costs, the Service Payment to the Class Representatives, and the Settlement Administration Costs. The hearing may be continued without further notice to you. It is not necessary for you to appear at this hearing.

The notice is a summary of the basic terms of the Settlement. In this website, you will find copies of the Settlement Agreement, Preliminary Approval Order, and other relevant documents, including the Notice.

If you still have further questions regarding the Notice, they should be directed to the Settlement Administrator at (866) 293-0287 or to Class Counsel at the addresses listed above in the Notice.

As of April 4, 2022, face masks are strongly recommended inside all Los Angeles County courthouses in alignment with Los Angeles County Department of Public Health guidance. When entering the Spring Street Courthouse federal workplace safety protocols require certification of full vaccination status or proof of a negative COVID test. If you do not feel well or believe you have been exposed to COVID-19, please contact Department 11 at (213) 310-7011.

Please do NOT telephone the Court, the Office of the Clerk, or Defendant for information regarding this Settlement.