Reuters reports that FinTech firm Plaid Inc. has agreed to pay $58 million to settle allegations that it improperly obtained and profited from user bank account credentials and personal financial information. The company also agreed to change certain of its business practices, according to public filings made in California.

“Plaintiffs look forward to presenting the settlement—and its benefits for consumers—to the court,” noted Lieff Cabraser partner Rachel Geman and co-counsel in a statement. Plaid issued a statement via its counsel that the settlement “resolves claims that go back to the earliest days of the company – as such, the underlying claims and challenged conduct do not reflect today’s Plaid.”

Plaid has agreed to implement meaningful business practice changes designed to remediate alleged privacy violations, improve user control over their private login information and financial data, and safeguard their privacy going forward.

As Reuters notes, “The litigation includes five proposed class actions filed last year against Plaid, which has a platform for users to connect their bank accounts to payment apps like Venmo and Square’s Cash App. The plaintiffs alleged in their lawsuit that Plaid has ‘exploited its position as middleman’ to obtain app users’ banking login credentials and use that information to gain access to and sell their transaction histories, without users knowing about Plaid’s role due to alleged deceptive tactics.”

Read the full story on Reuters.com.

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