Suit Over $54M FCRA Settlement Could Go to State Court

By Alex Schuman (August 1, 2022, 9:05 PM EDT) — A background-reporting company and a class of consumers that settled a dispute for $54 million through arbitration want a newly filed federal suit by Scottsdale Insurance Co. dismissed in favor of a state court proceeding.

American Detective Services Inc. and James Smith asked the Western District of Missouri on Friday to dismiss a request for declaratory judgment in favor of the Scottsdale Insurance Co. and to not let the issue be debated in federal court. Scottsdale, a Nationwide unit, accused ADS and Smith of coming to a settlement in Missouri state court without following policy guidelines and communicating with the insurer….

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