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Imperial Palace to Pay $325,000 to Settle Lawsuit

LAS VEGAS -- Imperial Palace Inc. has agreed to pay the federal government $325,000 to settle a lawsuit that accused the company of violating the Fair Credit Reporting Act. The lawsuit and a consent decree settling the case were filed Tuesday in U.S. District Court in Las Vegas.

According to the complaint, the Imperial Palace in Las Vegas and the Imperial Palace of Mississippi in Biloxi require job applicants to sign a Consumer Credit Release authorizing the casinos to obtain a consumer report.

"In numerous instances, defendants decided not to hire an applicant based in whole or in part on information contained in the applicant's consumer report," the lawsuit stated.

Before taking adverse action against an applicant based on information in a consumer report, according to the lawsuit, employers must give the applicant a copy of the report and a copy of the applicant's rights under the Fair Credit Reporting Act.

Although the defendants have taken adverse action against applicants based on information in consumer reports, the government's lawsuit alleged, they failed to provide those applicants with a notice containing the information required to be disclosed under the Fair Credit Reporting Act.

The alleged violations of the act "constitute unfair and deceptive acts or practices," according to the complaint. According to the consent decree, Imperial Palace agreed to pay the civil penalty "without any admission of liability."

The settlement includes an injunction that bars Imperial Palace from violating the Fair Credit Reporting Act.

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