The Federal Trade Commission has agreed to transfer an investigative job informant’s job from one company to another after a class action lawsuit was filed by the National Association of Consumer Advocates and the Consumer Federation of America, according to a court filing on Friday.
The complaint was filed in federal court in New York City by the Consumer Alliance, which represents consumer groups, and the consumer groups representing employers, labor unions, and others who were impacted by the investigation.
The job informant was fired by the law firm that hired him in April 2017 and is suing the firm and its former employers, according, the complaint.
It says the agency had the opportunity to terminate the informant’s employment but did not because it was an agency contract.
The investigation of the investigation by the agency found that the former employer of the informant was a non-profit organization that provided training for state and local law enforcement officials.
The Consumer Alliance filed a class-action complaint against the two firms in July 2018 and on Friday the FTC filed a motion to dismiss the complaint on behalf of the plaintiffs.
The FTC filed the lawsuit after a court ordered the agency to pay $1.2 million to the plaintiffs in September 2018 and $1 million to those who sued the two companies.
The consumer groups said the agency violated federal law and a state law in not compensating them in the amount that the agencies own investigation found that it owed them.
The agency did not respond to requests for comment.
The law firm the informant worked for at the time of his termination was hired by the firm that will take over the job informant role.
“While the FTC cannot and will not pay out a full amount due to the severity of the case, it can provide an interim amount to those affected by the violation and to the consumer organizations that are harmed by it,” the FTC said in a statement on Friday about the motion to be dismissed.
“The FTC will review the motion, and will make a final determination by July 31.”
The FTC was also seeking a settlement from the former employers of the former informant, according.
The agencies decision not to pursue a full payout is based on the fact that the agency was unable to get an agreement for the parties to resolve the case before the litigation.
The agents who investigated the case were not able to reach an agreement because they had no other choice, according the complaint, which says the agents believed the former employee had been fired after the FBI began investigating the company, which was called Blackwater Solutions, in April 2018.
The suit was filed against the former company in July of 2018.
A company spokeswoman said in an email Friday that the firm was not available for comment but declined to comment on the settlement.
In its lawsuit, the FTC alleged that the companies failed to give the agency information about the investigation, including the nature of the complaint and its timing, which led to the agency taking a $1 billion settlement from Blackwater in 2018.
According to the lawsuit, Blackwater was hired to provide security for the FBI’s New York headquarters in the summer of 2017 and had more than 700 employees at the agency.
The company hired the informant, who had worked at the FBI since 2010, to work as an informant, the lawsuit said.
The FBI declined to release a statement Friday, saying the agency would not comment on pending litigation.
“Blackwater has been a leader in homeland security and is committed to providing the highest standards of service to law enforcement across the country,” the company said in the statement.
“We will continue to provide the highest quality services to law enforcements and their employees.”