Lawsuit Over Retail Theft Database That Wrongfully Labeled Job Seekers as Criminals Settles for $2.38 Million  A Pennsylvania federal judge has approved a settlement for $2.38 million in a class action lawsuit that alleged a retail theft database used for background checks wrongfully labeled job seekers as criminals even if they were not convicted of a crime, according to a report by TopClassActions.com. Lead plaintiffs Keesha Goode and Victoria Goodman alleged in the class action lawsuit that LexisNexis distributed damaging information compiled in the Esteem database to current and prospective employers without implementing proper safeguards, in violation of the Fair Credit Reporting Act. According to the class action lawsuit, Goode was denied employment with Family Dollar Stores Inc. based on information contained in the Esteem database. Goodman claims she was denied a promotion from a Rite Aid store and was later fired based on information in the Esteem database. LexisNexis Risk Solutions Inc. agreed to suspend its Esteem retail theft database under terms of the settlement. The company also agreed to set more stringent requirements to protect job seekers if the database is used for employment background checks in the future. (Source esrcheck.com) (Source topclassactions.com)

Retailers Facing New Class Action Attack for Routine (but Unlawful) Background Check Practices  Retail employers are under attack by a wave of recent class action lawsuits alleging violations of the Fair Credit Reporting Act (FCRA), as well as related state counterpart laws – such as the California Consumer Credit Reporting Agencies Act and the California Investigative Consumer Reporting Agencies Act. These lawsuits center on employers’ alleged failure to provide proper disclosures to, and obtain proper authorizations from, prospective employees before performing background checks. In most cases, the disclosure is allegedly deficient for including extraneous information, such as a release of liability or confirmation of “at will” employment within the same disclosure document or combining the FCRA disclosure in an employment application. While this is not a new area of law, the complaints are growing and the allegations expanding, and if the trend continues, we may see more and more plaintiffs’ attorneys attempting to exploit this area. (Source jdsupra.com)

Who Benefits From Analytics - In-Store Retail Analytics: Most Valuable Insights
Respondents say Marketing is the department that benefits most from in-store retail analytics, although they cite several other functions that benefit as well, including Merchandising, Operations, and Loss Prevention. (Source marketingprofs.com)

Sears agrees to $5M settlement in Loss Prevention Manager wages class action; Attorneys to seek $1.66M  Sears has agreed to a $5 million settlement in a class action alleging it misclassified workers in order to not pay them overtime pay. “The $5 million settlement resolves all current and potential litigation concerning the classification of the [loss prevention managers] position,” the settlement document filed July 16 states. “This settlement was reached after the parties participated in two mediations with Mark Rudy, a well-known and experienced wage and hour mediator, followed by five months of exhaustive post-mediation negotiations conducted by the parties.” The settlement is the product of years of hard fought and extensive litigation by both parties, according to the settlement. Class counsel will file an application for an award of attorneys’ fees and reimbursement of costs and expenses incurred in the prosecution of this lawsuit and the finalization of this global settlement, according to the suit. The fees will not exceed $1.66 million. As part of the settlement, the parties have agreed that $15,000 should be paid to the California Labor and Workforce Development Agency and $75,000 will be withheld from the net settlement amount for the defendants to use to resolve the claims of other current or former loss prevention managers who are covered by this settlement and who have pending or threatened federal or state overtime claims at the time this stipulation is filed and/or or the remedy any errors or disputes. Each of the named plaintiffs will receive a $5,000 incentive award. Following deductions, the settlement will pay the employees an average of approximately $21 per each week they worked during the time period covered by the unpaid overtime settlement, which is an average of $1,800 per worker. The lawsuit was filed in July 2011 by Robert O’Toole, who took action on behalf of himself and other current and former loss prevention managers at Sears and Kmart stores who allegedly were denied overtime compensation. (Source washingtonexaminer.com)

Saks Fifth Avenue sued by African-American patron allegedly followed by security personnel in New Orleans  A Baton Rouge doctor is suing Saks Fifth Avenue and two of the retailer’s employees for allegedly accusing her of shoplifting because she is of African-American descent. Dr. Japera Levine filed suit against Saks Fifth Avenue LLC, a Saks sales associate, and a Saks security guard in the Orleans Parish Civil District Court on June 27. Levine claims that on June 30, 2013 between noon and 2 p.m., she went shopping at Saks Fifth Avenue on Canal Street in New Orleans. Her motivation for patronizing the retailer was celebratory, having just finished a surgical procedure at her hospital of employment in Baton Rouge, the suit states. It also states that Levine had shopped at Saks’ locations in other cities several times before June 30. Levine reports that she expressed incredulity, after which the presence of a security employee was brought to her attention. According to the suit, the security personnel had been following her throughout the store. Levine allegedly requested to speak with the manager, to whom she articulated frustration with being treated as a thief after spending $3,000 at that Saks location. On July 3, 2013, the Saks store manager allegedly called Levine and did not apologize for her experience on June 30. The manager allegedly explained that it is Saks’ store policy to follow customers when they are shopping. The plaintiff asserts that she saw other customers walking with items from one department to another without obstruction. (Source louisianarecord.com)

Possible Protection 1 buyers: PE firm, telecom or cableco
Home security giant Protection 1 is up for sale for more than $1.5 billion, Reuters reported this week. Likely buyers could range from a top private equity firm to a telecom or cableco, an industry analyst told Security Systems News. GTCR, the private equity firm that bought Protection 1 in 2010 for $828 million, has asked Morgan Stanley to help in the sales effort, the news service reported Aug. 4. Romeoville, Ill.-based Protection 1 did not respond to SSN’s request for comment on the report, which Reuters ascribed to unidentified sources. Jeff Kessler, managing director of institutional research at Imperial Capital, a New York City full-service investment bank, said the news that Protection 1 was a surprise to him and praised Protection 1's CEO Tim Whall, CFO Dan Bresingham and CIO Don Young as “three of the leading executive luminaries in the industry right now,” and noted that their “top-notch management” has resulted in marked improvement in both the residential and commercial side of the business.  (Source securitysystemsnews.com)

58% of credit cards & 26% of POS terminals projected to be EMV-compliant by 2015  "Looming regulatory issues and rumors that liability shifts would be extended have prevented merchants from getting the head start necessary to match financial institutions' EMV reissuance," said Michael Misasi, a senior analyst in the credit advisory service at Mercator and the primary author of the research note. "Both groups will be ramping up their EMV efforts around the same time." (Source mobilepaymentstoday.com)

Russian cyber crime gang now has stolen 4.5 billion records - largest cache ever!
The gang started off with black market databases which were then used to attack the various websites to spam victims and install malicious redirections on legitimate systems. They then upped the ante by getting access to data from botnet networks. The CyberVors did not differentiate between small or large sites. They didn’t just target large companies; instead, they targeted every site that their victims visited. With hundreds of thousands sites affected, the list includes many leaders in virtually all industries across the world, as well as a multitude of small or even personal websites.” says the report. (Source retailfraud.com)

All-Tag's response to the Tyco-Ningbo Patent Dispute over EAS Labels

July Same Store Sales Results

Costco up 5% with net sales up 9%
Gap up 2% with net sales up 5%
McDonald's U.S. down 3.2%

Quarterly Same Store Sales Results

Canada's Indigo - Q1 Chapters superstores up 8.3% & small formats up 1.9% - online sales up 14% & sales up 5.4%
Whole Foods Q3 up 3.9% with total sales up 10%
Gap Q2 flat with net sales up 3%

"Fraud is not a person - it is a dynamic grouping of statistics that deviate from the norm." Stuart B. Levine, CFI, CFCI CEO, The Zellman Group & Zellman Fraudnet

Counterfeiter of rare vintage wine sentenced to 10 years in prison for $20M "grand con"  Rudy Kurniawan, 37 years old, was once one of the world's most prolific wine collectors. He displayed no outward emotion as U.S. District Judge Richard Berman called his crimes "a bold, grandiose, unscrupulous but destined-to-fail con" in federal court in Manhattan. He has been jailed since his arrest 2½ years ago and that time will be reduced from his term. He was also ordered to pay $28.4 million in restitution to his seven victims and forfeit an additional $20 million as punishment. (Source wsj.com)

Palmdale, CA smash-and-grab suspect arrested; brutally assaulting owner
A man accused of smashing a window to break into a Palmdale boutique and brutally beating the owner was arrested Thursday. The suspect broke the windows of The Butterfly Boutique, a clothing store in the 1600 block of East Palmdale Boulevard, after midnight. He then went inside and started grabbing merchandise. When one of the owners sleeping inside confronted him, the suspect allegedly beat him. "He kicked the owner in the head at least 15 times, injuring him enough for him to be admitted to the hospital." (Source abc7.com)


Thieves Target Historic Hardware Store Going Out of Business in Arkansas  "It's Where Paul "Bear" Bryant wrestled a bear," Garlington revealed. Five thieves including two juveniles kicked in a back door over the July 4th holiday and stole thousands of dollars worth of merchandise. The theft included 22 firearms and 29 knives. It's estimated damage: upwards of $8,000. (Source arkansasmatters.com)


Arrest ends string of Dollar Store burglaries in MS and TN
Three Northeast Mississippi men were jailed here this week, possibly ending a spree of burglaries that occurred in three Mississippi counties and one on Tennessee. “There may be even more that we don’t know about,” Sheriff Jimmy Edwards said. The local incident occurred July 10 when someone broke into the Dollar General store at Myrtle about 1 a.m. by picking the lock, the sheriff said. “They went in straight to the safe and hooked a big strap like truckers use to tie down loads to the safe and attempted to jerk it out of the floor.” (Source newalbanygazette.com)

Boost Mobile Employee accidentally shoots himself inside Shawnee, KS strip mall store  People in a Shawnee strip mall had an alarming afternoon, after hearing a gun shot in a store next door. Police say an employee shot his gun inside a Boost Mobile store, accidentally shooting himself in the leg. People at businesses nearby say they’ve never seen a Boost Mobile employee carrying a gun. It is legal in Kansas to carry one and as of July the gun doesn’t even need to be concealed. (Source fox4kc.com)

Three Sears employees charged with felony theft in Monroe, LA
Three retail employees re arrested Wednesday for reportedly taking merchandise worth several thousand. Arrest affidavts said Monroe Police were sent to Sears on Millhaven Rd. An investigation revealed that the 3 employees were taking merchandise and placing it into people’s vehicles without paying. The items included a flat screen tv worth over $1200 and 2 sets of Washers and dryers valued at over $3300. (Source thenewsstar.com)

Burglary at Bridge Street Apple Store in Huntsville, AL
Huntsville police responded to a burglary at the Apple Store at Bridge Street Town Centre early Thursday morning. The incident happened around 3:20 a.m. Officers dispatched to Bridge Street for an alarm. When they arrived, the front glass of the business was broken out. They are not yet sure of the amount of property taken. (Source waff.com)

UK: Metropolitian Police in East London hunt for thieves who stole jewelry in Whitechapel armed robbery  The Metropolitan Police’s Flying Squad believes the suspects may have tried to pawn the south Asian-style jewelry, which was taken in a smash and grab at UKAY on Whitechapel Road on Wednesday, May 21. Four people on two mopeds pulled up outside the shop at around 9.40am and two of them ran into the front half of the shop, brandishing hammers and knives as they ran to the jewelry department which was separated by a door at the back of the store. (Source eastlondonadvertiser.co)

All clear given at Rock Hill Walmart following bomb scare

Two charged after Police-involved shooting at Chicago’s Northwest Side Jewel store

Pharmacy in Bellerive, KY Kroger robbed Thursday morning

● Coins & Cards - Butte, MT - Armed Robbery - arrested after standoff w/ Police ● Dollar General - Albany, GA - Armed Robbery ● Family Dollar - Macon, GA - Armed Robbery - police release photo ● Good Day Market - Prince Frederick, MD - Robbery ● Hobo Pantry - Dothan, AL - Armed Robbery - 4 charged ● Pat’s Market - Eureka, CA - Robbery - 2nd time in 2 days ● Puff’s - Houston, TX - Burglary ● Quik Trip - S. Tulsa, OK - Armed Robbery - clerk held at gunpoint ● Ripona Market - Ripon, CA - Armed Robbery - 5 arrested ● Rite Aid - Kittery, ME - Armed Robbery - suspect sentenced to 3 years ● Great Shops - Burlington, NC - Armed Robbery ● Texaco - Lacy Lakeview, TX - Armed Robbery ● Turkey Hill - Laureldale, PA - Armed Robbery - 2 teens arrested ● Waverly - Palo Alto, CA - Robbery ● 7-Eleven - Salisbury, MD - Armed Robbery

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