Any Lawyers On This Forum Or Anyone Who Could Shed Some Light?

Reason I'm asking - I just received a letter in the mail from a bankruptcy court in Delaware concerning a bankruptcy filing by a company named Altegrity. Normally I would have ignored this letter but when reading through it I noticed it listed the names of the debtors seeking chapter 11 bankruptcy protection. Low and behold some of the listed companies are: HireRight Records Services, Inc.; HireRight Solutions, Inc.; HireRight Technologies Group, Inc.; HireRight, Inc.; US Investigations Services, LLC.; USIS International, Inc. and USIS Worldwide, Inc. This is soliciting peoples objections to the aforementioned action.

For those who may not know - HireRight/USIS are the company many major carriers use to place information on a CDL A holders DAC report. Many carriers use this company to determine if a driver is hireable or not based on the information reported by the drivers previous employers. Many carriers have placed some not so honest information on a driver in these reports.

Anyone know anything about this and what effect (if any) will this have on a drivers future employment opportunities and the information previously reported on a driver?

Will this negate any information previously used against a driver?

Curious to know if a driver can seek legal action against this company for information it has submitted to companies about him/her?

Meper

Yes, legal papers can be dense. So the paper said Altegrity is going bankrupt.

The other names on there are probably creditors and Altegrity owes them money. (They won't be getting it.) HireRight et al. are probably ok.

Errol,

Actually, HireRight/USIS is one of the debtor companies filing for bankruptcy. The notice was sent to see if there are creditors who would have an objection to the named companies filing bankruptcy. Basically companies or individuals who these companies owe money too. There are a slew of companies listed as debtors many of whom have used different names of the years.

HireRight used to be USIS.

HireRight Solutions, Inc. used to be known as: USIS Commercial Services, Inc.; Transportation Information Services, Inc. d/b/a DAC (Drive-A-Check) Services; Total Information Services, Inc.

HireRight Records Services, Inc. used to be known as USIS Records Services, Inc.; Due Diligence, Inc.

HireRight, Inc. used to be known as HireRight.com, Inc.; Dynanet, Inc.; Hamwindows, Inc.; California Software, Inc.; William T. Baker and Associates, Inc. and Nannycare, LA, Inc. (don't know what's up with that name!)

USIS International, Inc used to be The Smith Corporation

Altegrity, Inc used to be US Investigations Services, Inc.. All of these companies are one and the same.

So they are definitely filing for bankruptcy.

Meper

Curious to know if a driver can seek legal action against this company for information it has submitted to companies about him/her?

Meper, it is basically useless to try and seek legal action against a bankrupt company. Many times the reason they are declaring bankruptcy is to avoid paying damages that someone else has won against them in court. If they are bankrupt then it's kind of like the old proverbial saying about not being able to get blood out of a turnip. Turnips don't bleed, and bankrupt companies don't pay out damages.

Thanks Old School! Any opinion on what becomes of the information HireRight (DAC) have on drivers? What about the companies who have used information from or sent to them about drivers?

This question isn't to you specifically Old School.

Are there any lawyers on this forum who could/would like to weigh in?

Meper

Altgrity owns HireRight amongst other companies.... Altegrity is under BK protection to reorganize, as far as I know , HireRight is fine and will continue business as usual. Not sure what kind of Bankruptcy they are under, but this seems to just be a business/legal maneuver to re-organize the company and shed some debt. Six Flags did the same thing a few years ago, they re-organized, closed some parks, sold some parks, got out of bad contracts and shed a bunch of debt. They are a much healthier company now as a result of that activity. Worst case scenario I see for HireRight is Altegrity gets completely liquidated and has to sell HireRight to someone else to pay their debts.

Thanks Old School! Any opinion on what becomes of the information HireRight (DAC) have on drivers? What about the companies who have used information from or sent to them about drivers?

This question isn't to you specifically Old School.

Are there any lawyers on this forum who could/would like to weigh in?

Meper

Not a lawyer (despite my parents' wishes, thank the Lord!), but I did work as a litigation paralegal for 10 years.

You received the notice because somewhere in their records, HireRight shows that they owe you money. Maybe you paid too much for a report and they owe you a $5 refund. They've already reached a tentative agreement with their big creditors. All the notice is telling you is that now is the time to object to whatever settlement agreement they've reached. For all practical purposes, unless you did some million dollar job for them that they haven't paid you for, the best thing you can do is toss the notice in the trash and forget about it.

You seem to be asking whether the fact that these companies are in bankruptcy will have any impact on the validity of the reports they provided to their customers. The answer to that is no, not at all. Their databases are probably their biggest business asset. That's how they make money. Whatever happens in bankruptcy court, you can be sure that those databases will remain intact.

Filing bankruptcy doesn't necessarily mean they're out of business. More likely, it's a way for them to force their creditors to restructure the debt they owe, or a way to avoid paying a big judgment against them in court.

Without additional information to the contrary, I can guarantee that HireRight is still sending out thousands of background checks each and every day, just like they always have, and with the same data and processes they've always used.

Their customers (i.e., companies who make hiring decisions based in part on the information provided by HireRight) will also continue to operate as usual. Your question seems to imply that somehow, because HireRight filed bankruptcy, companies can't rely on their data. The two things are totally unrelated. Bankruptcy is only about what happens to the money those companies owe their creditors. It is not civil litigation involving their business practices, or specifically about whether trucking companies can use the DAC to make hiring decisions.

There might be such litigation, but with regard to the bankruptcy, that would likely only involve issues of slow or nonpayment. Their creditors want them to keep making money. They're not interested in killing the cash cow. Doing that only increases the odds that they'll get no payment from them.

Another job I had included hiring managers. We always got a background check on them. While I have certain opinions about the usefulness of the process most companies use to find the right person (background checks, resumes, interviews, etc.), there is no way that that whole process is going to go away just because HireRight filed bankruptcy. The whole corporate recruiting system in this country relies on that data...and not just trucking companies, but almost every big company you've ever heard of.

Meper, do you have something on your DAC that you're hoping will go away because of this? If so, I'm afraid you're out of luck. Best thing you can do, if that is the case (and I don't know that it is the case, just if it is), is to follow the process of contesting the information on the DAC in writing and waiting to see if the company that put that information on the DAC responds.

Thanks Bud A.. And yes, there is some erroneous info on my DAC that I am in the process of trying to get removed.

Meper