In re Plaid Inc. Privacy Litigation — N.D. Cal., No. 4:20-cv-03056-DMR

Case summary

This page holds the docket of a consumer class action consolidated as In re Plaid Inc. Privacy Litigation in the U.S. District Court for the Northern District of California, No. 4:20-cv-03056-DMR. The complaint filed May 4, 2020 by James Cottle and Frederick Schoeneman against Plaid Inc. pleads claims under the Computer Fraud and Abuse Act, 18 U.S.C. § 1030, and the Stored Communications Act, 18 U.S.C. § 2701, with supplemental state law claims, over Plaid's collection of consumers' bank account login credentials and financial data through its bank-linking service. The court granted in part and denied in part Plaid's motion to dismiss the consolidated first amended complaint on February 11, 2021. The parties later agreed a non-reversionary settlement fund of $58 million.

Case at a glance

What does the complaint allege?

That Plaid, a financial technology company whose main service to participating apps is bank linking and verification, obtained consumers' bank account credentials and used them to collect financial data without their knowledge or consent, sold or otherwise exploited that data, and concealed the practice; the plaintiffs seek economic redress and equitable relief.

What does the settlement provide?

The class notice states that under the settlement Plaid will pay $58 million to establish a settlement fund, from which court-approved attorneys' fees and expenses, service awards and administration costs are deducted. A mediator's declaration records that the parties reached agreement on a non-reversionary settlement fund of $58 million on June 11, 2021, based on a mediator's proposal.

Who is in the settlement class?

As the notice puts it, people who provided financial account login credentials to Plaid through Plaid Link while resident in the United States.

Summary written from the documents on this page; every sentence is sourced.