HireRight explained

HireRight Holdings Corporation
Type:Private
Foundation:[1]
Location:Nashville, Tennessee, U.S.
Key People:Guy Abramo
Industry:Pre-employment screening
Services:Background check
Num Employees:3,190 (2023)[2]

HireRight Holdings Corporation is a global family of background screening companies based in Nashville, Tennessee. The company became public via an initial public offering in 2021 with a listing on the New York Stock Exchange.[3] [4] In 2024, private equity firms General Atlantic and Stone Point Capital agreed to acquire the company for $1.65 billion.[5] [6] The transaction closed on June 28, 2024.[7]

Acquisitions and mergers

Powerchex

On June 23, 2010, HireRight announced that it had acquired Powerchex, a UK-based pre-employment screening company specialising in the financial services sector in the City of London.[8] Powerchex was a full member of the UK chapter of the National Association of Professional Background Screeners or NAPBS,[9] and was started by Alexandra Kelly in 2005 who is the former managing director and owner of the company.

In October 2010, Powerchex was rebranded as HireRight.[10]

Both Powerchex and Kroll Background Screening (below) are now fully owned subsidiaries of HireRight.

Kroll

On August 3, 2010, HireRight then-parent company Altegrity Risk International announced it had completed the acquisition of Kroll Inc. from Marsh & McLennan Companies in an all-cash transaction valued at US$1.13 billion. In October 2010, Kroll Background Worldwide was rebranded as HireRight.[10]

On March 13, 2018, it was reported that Duff & Phelps Corp. would buy Kroll, Inc. (which did not include background screening portion of the former Kroll business that had been rebranded with HireRight brands).[11] On June 4, 2018, the transaction was completed.[12] [13]

General Information Services

On Friday, May 25, 2018, HireRight and General Information Services (GIS) announced their intent and agreement to a merger.[14] The companies announced the closing of the merger on July 12, 2018.[15] The resulting combined group is the largest provider of background screening services in the United States. Following the merger, HireRight rebranded, with both HireRight and GIS using the new branding.[16]

J-Screen and PeopleCheck

On October 12, 2019, HireRight announced the acquisition of J-Screen in Japan and PeopleCheck in Australia.[17]

Legal issues with service

HireRight was the subject of a number of class-action and Fair Credit Reporting Act (FCRA) lawsuits.[18] In 2011 the company paid $28 million to plaintiffs who accused HireRight of failing to provide copies of reports to job applicants and failing to resolve disputes.[19] And on August 8, 2012, the US Department of Justice announced HireRight settled charges of violating the FCRA for $2.6M.[20]

Companies that use background check services must follow FCRA procedures or face class-action liability with millions of dollars in exposure.[21] According to a Wall Street Journal investigation into hiring practices in the trucking industry, class-action lawsuits were brought against trucking companies over how they use HireRight.[22] HireRight customer U.S. Xpress settled in 2013 for $2.75M, and Swift in 2014 for $4.4M over their failure to disclose hiring practices.[23] [24] [25] [26]

See also

Notes and References

  1. Web site: Fact Sheet . 11 May 2019.
  2. Web site: 2023 Annual Report (Form 10-K) . March 12, 2024 . U.S. Securities and Exchange Commission.
  3. Web site: Linnane . Caira . October 29, 2021 . HireRight IPO prices at $19 a share, below proposed price range of $21 to $24 . MarketWatch.
  4. News: General Atlantic-backed HireRight files for U.S. IPO . October 6, 2021 . Reuters.
  5. News: Stone Point, General Atlantic raise offer to buy HireRight to $1.65 bln deal . February 16, 2024 . Reuters.
  6. Web site: Dorbian . Iris . February 16, 2024 . General Atlantic and Stone Point to take background screening firm HireRight private . PE Hub.
  7. https://ir.hireright.com/news-events/press-releases/detail/242/hireright-announces-completion-of-acquisition-by-general HireRight Announces Completion of Acquisition by General Atlantic and Stone Point Capital
  8. News: Third of applicants tell lies to get a job. ERT Weekly. September 1, 2005.
  9. http://www.powerchex.co.uk/documents/NAPBS%20press%20release.pdf Powerchex Joins the National Association of professional background Screeners
  10. Web site: Kroll Background Worldwide And Powerchex Unite Under HireRight Brand . HireRight . 11 October 2019.
  11. News: Banerji . Gunjan . March 13, 2018 . Duff & Phelps to Buy Corporate-Investigations Firm Kroll . . The New York Times, New York City, United States . March 17, 2018.
  12. Web site: Duff & Phelps Announces New Business Unit After Completing Kroll Acquisition .
  13. Web site: Kroll's History . Kroll . 11 October 2019.
  14. Web site: HireRight and GIS to Merge . HireRight . 11 October 2019.
  15. Web site: HireRight and GIS Ownership Complete Merger. HireRight . 11 October 2019.
  16. Web site: New HireRight, New Look. HireRight . 11 October 2019.
  17. Web site: HireRight Strengthens Global Offering with Two Key Acquisitions in Japan and Australia. HireRight . 11 October 2019.
  18. Web site: Litigation: Wirt v. Altegrity, Inc. & HireRight, Inc. . Legal Action Center . 11 May 2019. https://web.archive.org/web/20190511205610/https://www.lac.org/what-we-do/criminal-justice/litigation-wirt-v-altegrity-inc-hireright-inc/. 2019-05-11.
  19. Web site: Chao . Loretta . Driver-Screening Firms Draw Scrutiny . Wall Street Journal . 10 May 2019 . 19 October 2016.
  20. Web site: Office of Public Affairs . Employment Screening Services Provider Settles Charges of Violating Fair Credit Reporting Act . www.justice.gov . Department of Justice . en . 8 August 2012. 11 May 2019.
  21. Web site: Holland . Ron . Batten . Jonathan . FCRA 101: How to Avoid Risky Background Checks . SHRM . 11 May 2019 . 20 October 2017.
  22. Web site: Job applicants claim inaccurate background check report prevent them from finding a job New York Consumer Law Blog . Law Office of Adam G. Singer . 11 May 2019.
  23. Web site: Kell-Holland . Clarissa . U.S. Xpress settles for $2.75 million in lawsuit over background checks . Land Line Magazine . 11 May 2019 . en. https://web.archive.org/web/20190511010417/http://www.landlinemag.com/story.aspx?storyid=61995#.XNYflBOmN24. 2019-05-11.
  24. Web site: Barradas . Samuel . Illegal Background Checks Cost U.S. Xpress $2.75 Million . TruckersReport.com . 11 May 2019 . 11 April 2013.
  25. Web site: Jaillet . James . Swift makes $4.4 million settlement with 160,000 driver applicants over background checks . Overdrive . 27 May 2020.
  26. Web site: Miller . Arnall Golden Gregory LLP-Montserrat C. . Swift Transportation Company, background checks and the FCRA Lexology . Lexology . 11 May 2019 . en.

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