In one of the last decisions issued during its just completed term, a divided U.S. Supreme Court ruled that even when a company violates a federal law, in this case the Fair Credit Reporting Act (FCRA), members of a class are not permitted to sue in federal court unless they can show they have suffered a “concrete harm” resulting from the alleged violation. The Court also made clear that potential future harm is not enough to establish standing.
For context, before a group of individuals may sue in federal court they must demonstrate that they have “standing” to file suit. One question that courts sometimes grapple with is whether plaintiffs can assert claims for damages against a business that has violated the terms of a federal statute even though the plaintiffs have suffered no physical, monetary, or reputational harm.
Directly addressing this question, the High Court has now ruled in TransUnion, LLC v. Ramirez, No. 20-297 (U.S. June 25, 2021), that even when a company violates a federal law, in this case FCRA, members of a class do not have standing to sue unless they have suffered a “concrete harm” resulting from the violation.
Members of the Center for Workplace Compliance (CWC) can read more here.