A federal judge in Newark has dismissed a proposed class action in multidistrict litigation against Michaels Stores Inc. for failure to plead subject matter jurisdiction under the U.S. Supreme Court’s recent decision in Spokeo v. Robins.
The plaintiffs are job applicants who say Michaels violated the Fair Credit Reporting Act because the company’s disclosure of its intent to conduct background checks on them was insufficient. But U.S. District Judge Kevin McNulty said the plaintiffs, who were all hired by Michaels, lacked standing because they did not make the required showing that they suffered an injury-in-fact.