Plaid’s $58 Million Privacy Deal Gets Early Sign-Off
As reported by Ben Kochman of Law360, a California federal judge has given preliminary approval to a $58 million settlement between financial technology company Plaid Inc. and a proposed class of users of popular apps like Venmo and Coinbase, who allege that Plaid unlawfully accessed their personal banking data without getting consent.
Shawn Kennedy of Herrera Kennedy LLP was appointed lead counsel for the consumer plaintiffs, along with co-counsel Rachel Geman of Lieff Cabraser Heimann & Bernstein, LLP, and Christopher Cormier of Burns Charest LLP. “This is one of the largest class action privacy settlements ever achieved,” said Kennedy. “It reflects the importance of protecting consumer privacy interests in an era where so many financial transactions occur online.”
In her order, Judge Donna M. Ryu noted that the settlement also gives “robust injunctive relief that will benefit the class.” According to those provisions of the settlement, Plaid will be required to make a number of “privacy-centric changes to its user interface and delete data on bank transactions for consumers whose apps did not request that data.”
The article further notes:
[T]he app users alleged that Plaid had breached their privacy rights by hiding the way it collects user bank login information when consumers sign up to use a payment app that partners with Plaid. The consumers accused the company of creating a misleading user interface designed to have the same look and feel of the login screens of users' own bank accounts, a practice that Plaid says it has moved away from. Plaid then used those login credentials to collect app users' private transaction history, detailed information about their investments, annual salary, and even identifying information about their minor-aged children, the consumers alleged.
For prior coverage of Herrera Kennedy and the Plaid class action, see the following links:
Plaid Agrees to Settle Privacy Class Action for $58 Million
Lawsuit against Plaid heightens focus on data privacy issues
Plaid to Face Consumer Privacy Anti-Phishing Claims