Cybersecurity & Data Privacy

Plaid Financial Privacy Violations Class Action

Lieff Cabraser represents consumer plaintiffs in a class action lawsuit alleging that Plaid, Inc., a financial technology company, invaded consumers’ privacy. Plaintiffs allege Plaid improperly takes consumers’ personal banking information when consumers use mobile apps to send and receive payments. Plaid provides third-party bank account authentication services for several well-known payment apps, including Venmo, Coinbase, Square’s Cash App, and Stripe.

The lawsuit describes how Plaid obtains consumers’ bank login credentials to begin with, including its alleged practice of using login screens that look like those of real banks. It also describes how Plaid accesses consumer bank accounts several times per day, collects data going back for years, and then sells and otherwise exploits the highly personal and private information it has wrongfully obtained. Plaintiffs argue that Plaid’s privacy breaches violate established social norms, and expose consumers to additional financial privacy risks.

The lawsuit asserts claims under state and federal consumer protection and privacy laws and seeks monetary as well as injunctive (practice change) relief to stop the conduct and purge all improperly obtained data.

Contact a Data Security and Privacy Lawyer at Lieff Cabraser

If you have linked your bank account for use with a pay app or other online service and have concerns about the security and privacy of your personal banking information, our nationally-ranked Cybersecurity and Data Privacy lawyers would welcome the chance to talk to you about your experience and your legal rights. There is no charge or obligation for our review of your potential case.


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Tags: Smartphone, Venmo, Cash App, Coinbase, Stripe