Lawsuit Alleges Lexis Nexis Charges Extra for Accurate, Current Bankruptcy Information

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action lawsuit filed in Virginia alleges defendant Lexis Nexis Risk Solutions FL, Inc., despite having amassed “the largest, most comprehensive base of information in the world today,” knowingly produces “grossly” inaccurate and incomplete information concerning consumer bankruptcies for the sake of profit. Citing alleged Fair Credit Reporting Act (FCRA) abuses, the 10-page lawsuit claims Lexis Nexis allows its customers to buy incomplete information concerning bankruptcies, while charging additional amounts “for complete and accurate disposition information,” namely vital data on bankruptcy discharges.

“Rather than ensuring the maximum possible accuracy of its reports, [the defendant] furnishes incomplete and inaccurate information regarding bankruptcy discharges in order to sell a higher volume of reports,” the complaint alleges.

Mentioned in the lawsuit is FactorTrust, Inc., a non-party entity and customer of Lexis Nexis that obtains allegedly incomplete consumer reports from the defendant. The plaintiffs argue that FactorTrust’s supposed decision to not pay extra for full, accurate reports speaks to the unlawfulness of the defendant’s policy of reportedly charging more for the most up-to-date bankruptcy information:

“[The defendant] did not provide any information regarding each of the plaintiffs’ bankruptcy discharges to FactorTrust, Inc., who wanted to save 35 cents rather than obtaining a complete and accurate report regarding the plaintiffs’ bankruptcies,” the complaint reads.

Though each plaintiff’s bankruptcy was discharged between 2009 and 2014, the complaint claims Lexis Nexis nonetheless produced consumer reports to FactorTrust that showed each consumer was still in bankruptcy.