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U.S. residents to receive $918 in Walgreens settlement

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  • Walgreens settlement over class action lawsuit.
  • Find out the deadline to make a claim.
  • Who will receive the payments?

In a recent legal settlement, Walgreens has agreed to pay $918 to some U.S. residents.

These payments are directed at victims of poor hiring practices as the result of a class action lawsuit.

This compensation is part of a resolution where the pharmaceutical company faces allegations of violating the Fair Credit Reporting Act (FCRA).

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Walgreens to issue $918 Payments

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The accusations against Walgreens, regarding the Fair Credit Reporting Act (FCRA), are for improperly using background check information in their hiring decisions.

The settlement, filed this month, covers individuals who applied for employment at Walgreens between March 30, 2020, and May 17, 2022.

According to The Sun, the class-action lawsuit against the pharmacy chain alleges that the company sent emails that did not comply with FCRA requirements.

This resulted in unjustified employment rejections for some applicants. Although Walgreens has not admitted any liability, it has agreed to pay the compensation to settle the litigation.

FCRA violation and hiring practices

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According to the settlement, some people will $918 payments from Walgreens, but they must file a claim.

This means that anyone affected will be eligible for an initial payment of $100, but could receive up to an additional $818.28 if they contact Walgreens.

Contact with the company will be to discuss or challenge the results of the background check. The deadline to file claims ends on May 23, 2024.

Additionally, the outlet reported that the settlement comes at a tumultuous time for the popular pharmacy chain.

Walgreens closures

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In 2023, the franchise was forced to close about 150 of its stores across the United States.

This resulted in the loss of more than 500 jobs and a reduction of about 10% in the company’s staff.

These closures were part of a strategic adjustment due to «challenges in macroeconomic conditions and a slow anticipated start to the cough, cold, and flu season.»

The company faces pressures from competitors like CVS and Rite Aid, who are also experiencing financial challenges.

What is a class action lawsuit?

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For example, Rite Aid declared bankruptcy last year after a significant drop in its shares and a loss of $1,000 million, illustrating the volatility in the pharmaceutical sector.

Class actions, like the one affecting Walgreens, allow groups of people to join in a lawsuit.

These often result in settlement payments, where companies compensate plaintiffs in exchange for waiving future legal actions.

In a broader context, companies like Walmart are also facing legal challenges that impact their operations.

Impact on Walgreens and its competition

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The final hearing for the Walgreens settlement is scheduled for July, marking a significant milestone in this process, noted The Sun.

This settlement aims to compensate those affected by the company’s hiring practices.

It also raises questions about accountability and ethical business practices in the pharmaceutical and retail industry, noted

Affected individuals who have filed their claim against the chain are urged to stay alert to ensure the $918 reaches their pockets.

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