The proposed settlement would resolve claims for invasion of privacy, unjust enrichment and violation of California's anti-phishing law, among others. The plaintiffs alleged in their lawsuit that Plaid has 'exploited its position as middleman' to obtain app users' banking login credentials and use that information to gain access to and sell their transaction histories, without users knowing about Plaid's role due to alleged deceptive tactics.Ī California federal magistrate judge in May dismissed some of the claims in the case while letting others proceed.

The consolidated litigation includes five proposed class actions filed last year against Plaid, which has a platform for users to connect their bank accounts to payment apps like Venmo and Square's Cash App. 'Plaid has agreed to implement meaningful business practice changes designed to remediate alleged privacy violations, improve user control over their private login information and financial data, and safeguard their privacy going forward,' the plaintiffs' lawyers wrote in the filing. The injunctive relief that Rhodes referenced is detailed in the memo in support of the preliminary approval motion filed with the court Thursday. 'The settlement's core provisions align with the workflows that were already underway – data minimization, enhanced user control, simplified UI's and dashboards for privacy as such, we readily agreed to monument these provisions in this agreement,' Rhodes said.

Michael Rhodes of Cooley, lead counsel for Plaid, said in a statement the settlement 'resolves claims that go back to the earliest days of the company – as such, the underlying claims and challenged conduct do not reflect today's Plaid.' 'Plaintiffs look forward to presenting the settlement-and its benefits for consumers-to the court,' Rachel Geman of Lieff Cabraser Heimann & Bernstein, Christopher Cormier of Burns Charest and Shawn Kennedy of Herrera Kennedy, lawyers for the plaintiffs, said in a statement. San Francisco-based Plaid also agreed in the nationwide settlement to change certain business practices, according to filings Thursday in California federal court made by lawyers for consumers. (Reuters) - Plaid Inc has agreed to pay $58 million to resolve consumers' claims that the financial technology company obtained and used bank account credentials and financial information without consent.

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