If you own or owned one or more financial institution account (1) that Plaid accessed using your login credentials and connected to a mobile or web-based fintech application that enables payments (including ACH payments) or other money transfers or (2) for which you provided financial account login credentials to Plaid through Plaid Link, you may be eligible to receive benefits from a Plaid data privacy class action settlement.
Plaid, Inc. has reportedly agreed to a class action settlement of a data privacy class action lawsuit filed against it in the United States District Court for the Northern District of California (Oakland Division), styled In re Plaid Inc. Privacy Litig., Class Action Case No. 20-3056, alleging, among other things, that Plaid (a service used by a variety of mobile and web-based applications that allow users to transfer money by connecting to app users’ financial accounts) misled and violated the privacy of the proposed Class Members by obtaining data from their financial accounts without authorization, and by obtaining their bank login information through its user interface known as Plaid Link.
Who Is Included In The Plaid Data Privacy Class Action Settlement?
The Plaid Data Privacy class action settlement reportedly includes, unless otherwise excluded, the following settlement class:
All natural persons who reside in the United States and who own or owned one or more Financial Accounts at the time such persons resided in the United States from January 1, 2013 to date preliminary approval of the settlement is granted.
“Financial Account” reportedly means a financial institution account (1) that Plaid accessed using the user’s login credentials and connected to a mobile or web-based fintech application that enables payments (including ACH payments) or other money transfers or (2) for which a user provided financial account login credentials to Plaid through Plaid Link.
What Settlement Benefits Does The Plaid Data Privacy Class Action Lawsuit Settlement Provide?
Under the Plaid Data Privacy lawsuit settlement, Plaid has reportedly agreed to pay $58,000,000 to create a non reversionary Settlement Fund for the benefit of Class Members, who will receive a claims-made pro rata payment after the deduction of settlement-related costs, including the expenses of the settlement administrator and the costs of notice to the Class, any named plaintiff service awards, attorneys’ fee award and expense reimbursements, and any other costs approved by the Court.
If the Plaid settlement is approved by the Court, class members reportedly will be entitled to claim a cash payment by filing a claim form online through the Settlement Website or by receiving and mailing a paper claim form.
In addition, under the settlement, Plaid has reportedly agreed to implement certain business practice changes designed to remediate alleged privacy violations, improve user control over their private login information and financial data, and safeguard their privacy.