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On April 30, 2021 a California district court trimmed various federal privacy-related claims, including the Computer Fraud and Abuse Act (CFAA) claim, from a highly-visible, ongoing putative class action against fintech services company Plaid Inc. (“Plaid”), but allowed other state law privacy claims to go forward. The lawsuit involves Plaid’s alleged collection and use of consumers’ banking login credentials and later processing and selling of such financial transaction data to third parties without adequate notice or consent (
The court’s decision did not delve deeply in the merits of the CFAA claim, as it was dismissed on procedural grounds; similarly, resolution of the major issues of the case about invasion of privacy and the adequacy of consent to access consumers’ bank accounts and collect/aggregate data was not achieved at this early stage of the litigation. Thus, this case is just beginning and is
Plaid Federal Electronic Surveillance Claims Dropped, Privacy Claims Survive Tuesday, May 11, 2021
On April 30, 2021 a California district court trimmed various federal privacy-related claims, including the Computer Fraud and Abuse Act (CFAA) claim, from a highly-visible, ongoing putative class action against fintech services company Plaid Inc. (“Plaid”), but allowed other state law privacy claims to go forward. The lawsuit involves Plaid’s alleged collection and use of consumers’ banking login credentials and later processing and selling of such financial transaction data to third parties without adequate notice or consent (
The court’s decision did not delve deeply in the merits of the CFAA claim, as it was dismissed on procedural grounds; similarly, resolution of the major issues of the case about invasion of privacy and the adequacy of consent to access consumers’ bank accounts and collect/aggregate data was not achieved at this early stage of the lit
Wednesday, May 5, 2021
For those who have not been following the Plaid class action unfold, we previously covered it HERE and HERE. Soon after the class actions were consolidated last year, Plaid filed a motion to dismiss Plaintiffs’ Consolidated Class Action Complaint in September, 2020. Oral arguments were held in February of this year, and the Court just issued its 38-page ruling, partially granting Plaid’s motion to dismiss, with prejudice.
As you may recall, this action consists of five separately-filed putative class action complaints in which 11 named plaintiffs allege that Plaid used consumers’ banking login credentials to harvest and sell detailed financial data