Ninth Circuit Overturned $140 Million CenturyLink Verdict

The court ruled that CenturyLink's interpretation of federal credit laws shielded it from class action liability.

Updated on Sept. 23, 2026 in Financial Crime

Ninth Circuit Overturned $140 Million CenturyLink Verdict

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Should companies be held liable for legal interpretations that lead to credit reporting errors?

The Ninth Circuit has overturned a $140 million class action verdict previously awarded against CenturyLink. Judges determined the company correctly interpreted the Fair Credit Reporting Act, protecting it from liability for willful violations.

Why it matters

This ruling clarifies the scope of liability for companies under the Fair Credit Reporting Act when accessing consumer credit data. It affirms that reasonable interpretations of the law provide a defense against claims of willful violation.

The Ninth Circuit overturned a $140 million class verdict, ruling that the company's interpretation of the Fair Credit Reporting Act was reasonable. The lawsuit previously centered on the company accessing consumer credit reports during service orders.

The players

Ninth Circuit

This is a United States Court of Appeals that holds jurisdiction over several federal district courts in the western United States.

CenturyLink

CenturyLink is a major telecommunications company that provides internet and data services to consumers and businesses.

The details

The court found that CenturyLink was shielded from liability because its actions regarding consumer credit reports during online service orders aligned with a reasonable interpretation of the Fair Credit Reporting Act. By upholding this interpretation, the court effectively nullified the previous multi-million dollar class verdict.

September 22, 2026: The Ninth Circuit issued the ruling overturning the class action verdict.

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Legal Context

This case clarifies the reach of the Fair Credit Reporting Act regarding corporate liability for credit checks, a central theme in federal consumer protection litigation. The ruling sets a precedent for how federal courts interpret intent and liability under the Fair Credit Reporting Act.

This decision limits the potential for consumers to seek damages for credit report access during service sign-ups if the company maintains a reasonable legal interpretation. Residents should remain aware of their rights regarding consent for credit checks during standard service orders.

The takeaway

Companies may utilize reasonable interpretations of federal statutes as a defense against class action lawsuits. Consumers should consistently review the terms of service that specify how their personal credit data will be handled during account setup.