(Payments Going Out) Have You Used Plaid? You Could Be Eligible for a Payout from $58M Settlement

Have You Used Plaid? You Could Be Eligible for a Payout from $58M Settlement

Update 11/18/22: Mark received a payment of $35.97 this morning so payments are starting to go out.

Plaid is a popular service that lets you connect bank accounts to 5,000 mobile and web-based applications. And if you have used this service over the last eight or nine years, you are eligible to file claim and get your share of a $58 million settlement.

A Settlement has been proposed in class action litigation against Plaid Inc. This class action alleges Plaid took certain improper actions. It claims that Plaid obtained more financial data than was needed by a user’s app, and obtained log-in credentials (username and password) through its user interface, known as “Plaid Link,” which had the look and feel of the user’s own bank account login screen, when users were actually providing their login credentials directly to Plaid.

Plaid denies these allegations and any wrongdoing and maintains that it adequately disclosed and maintained transparency about its practices to consumers.

You may be a Class Member if you are a United States resident and you connected a financial account to an app between January 1, 2013 and November 19, 2021. To confirm whether specific apps or services that connected to your financial account(s) used Plaid for account connections, you can run a search on the SEARCH FOR APP/SERVICE page of this website by clicking here.

Under the Settlement, Plaid has agreed to minimize the data it stores going forward, to delete certain previously retrieved data, and to improve and maintain certain already-implemented enhancements to Plaid Link. Class Members are also able to view and manage the connections they’ve made between their financial accounts and chosen applications using Plaid, and delete data stored in Plaid’s systems by creating a Plaid Portal account, at my.plaid.com.

You can read more details about the lawsuit and this settlement here.

Payout

Plaid has agreed to create a $58 million Settlement Fund, to be used for cash payments to Class Members who submit valid claims for compensation, after deducting the costs of the settlement administration, court-approved attorneys’ fees and expenses, and Service Awards for eleven Class Representatives.

The amount of monetary payments issued to Class Members will depend on the number of valid claims received. In exchange for the benefits the Settlement provides, Class Members will release any and all claims they may have (whether known or unknown) regarding the allegations in the Complaint.

You may file a Claim in order to receive a monetary payment from the Settlement Fund. Filing a Claim is the only way to receive a payment from this settlement.

HT: Doctor of Credit