Grissom v. Sterling Infosystems, Inc.

Background

Grace Grissom, individually and on behalf of similarly situated people, asked the court to give final approval to a class-action settlement with Sterling Infosystems, Inc. She also requested attorneys’ fees, costs, and a service award. The court held a final fairness hearing on May 7, 2025, where the parties and other interested people could support or oppose the proposed settlement.

The case concerned consumers for whom Sterling matched a record in a consumer report using a name developed through a Social Security number trace, even though the consumer’s first name, last name, and middle name or middle initial did not exactly match the corresponding information in the reported record.

Settlement Classes

The court reaffirmed certification of the Injunctive Relief Class under Federal Rule of Civil Procedure 23(b)(2). That class covers the consumers described above for the period from September 25, 2018, through June 4, 2021.

The court also reaffirmed certification of the Damages Class under Rule 23(b)(3). That class includes the same consumers when they either disputed the report and received an amended report or received a pre-adverse-action notice concerning the report.

The court reaffirmed Grace Grissom as the representative of both classes and reaffirmed E. Michelle Drake and John G. Albanese of Berger Montague PC as class counsel. It found that the notice provided to class members was the best notice practicable under the circumstances and satisfied the Constitution, Rule 23, and other applicable law. The court determined that class members were bound by the final approval order under the settlement’s terms.

Rulings

Judge Vernon S. Broderick finally approved the settlement under Rule 23(e), finding that it was fair, reasonable, adequate, and in the best interests of the settlement classes. The court cited the complexity and expected expense of continued litigation, counsel’s assessment of the claims and defenses, the risks of trial, the parties’ good-faith negotiations, and the positive reaction of the classes. The court overruled the one objection filed in the case.

The court dismissed all claims in the action with prejudice and terminated them. It required class members to comply with the settlement’s releases and restrictions on bringing released claims. The court directed the parties to carry out their settlement obligations and retained exclusive, continuing jurisdiction over implementation and enforcement of the settlement agreement. If the settlement’s effective date does not occur, the final approval order will be vacated under the order’s terms.

Fees, Service Award, and Case Closure

The court approved attorneys’ fees and costs for class counsel as follows:

- For the Damages Class: $833,333.33 in attorneys’ fees and $20,212.21 in costs. - For the Injunctive Relief Class: a separate $500,000 payment by Sterling.

The court also approved a $10,000 service award to Grace Grissom, with $5,000 paid from the Damages Class Settlement Fund and $5,000 paid from the $500,000 awarded for the Injunctive Relief Class. The settlement administrator was authorized to reimburse reasonable costs from the Damages Class Settlement Fund and was directed to distribute the remaining fund to participating damages-class members as provided in the settlement agreement.

The court entered the order as final and appealable, directed the clerk to terminate the motions at Documents 48 and 49, and closed the case.