On July 20, 2022, U.S. District Judge Donna M. Ryu of the Northern District of California issued an order granting final approval to a $58 million settlement of the multidistrict litigation brought by Lieff Cabraser on behalf of consumers accusing FinTech firm Plaid Inc. of improperly obtaining and profiting from user bank account credentials and personal financial information.
Plaid provides third-party bank account authentication services for several well-known payment apps, including Venmo, Coinbase, Square’s Cash App, and Stripe. Plaintiffs alleged Plaid unlawfully collected personal banking information when consumers used mobile apps to send and receive money from their financial accounts. The lawsuit claimed that Plaid misled consumers and violated their privacy and the privacy of the putative class members by obtaining sensitive data about their financial accounts without authorization.
In the Order, Judge Ryu recognized the strength of Plaintiffs’ claims and praised the $58M settlement, which includes robust injunctive relief designed to benefit consumers. As part of the proposed settlement, Plaid agreed to implement significant business practice changes designed to remediate alleged privacy violations, improve user control over private login information and financial data, and safeguard user privacy going forward.
Learn more about the Plaid Financial Privacy Violations Class Action.