Plaid has settled a class action lawsuit, paying $58 million as part of the settlement. If you’ve used one of the thousands of mobile apps that has integrated Plaid, there’s a good chance that you’re eligible to submit a claim under this Class Action Settlement.
Plaid Class Action Settlement
Ninja Note: Looking for other Class Action Settlement posts? Go here for the entire list.
A Settlement has been proposed in class action litigation against Plaid Inc. (“Plaid”). Approximately 5,000 mobile and web-based applications (“apps”) use Plaid to enable users to connect the app to the users’ bank account(s).
This class action alleges Plaid took certain improper actions in connection with this process. The allegations include that Plaid:
- (1) obtained more financial data than was needed by a user’s app, and
- (2) 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.
Under the Settlement, Plaid has agreed to establish a $58 million Settlement Fund, 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.
Am You Eligible?
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.
More specifically, you are a Class Member if you own or owned one or more “Financial Accounts” that Plaid accessed using your login credentials and connected to a mobile or web-based app that enables payments or other money transfers; or for which you provided Financial Account login credentials to Plaid through Plaid Link; between January 1, 2013 and November 19, 2021.
If you want to check if an app or service you’ve used is part of this settlement, you can search for it here to confirm whether the specific apps or services used Plaid.
How To File A Plaid Claim?
You have until April 28, 2022 to file a claim. Claim forms must be submitted online by April 28, 2022 or postmarked by this date if mailed.
You can choose to be paid via PayPal, Venmo, or directly to your bank account.
Plaid Settlement Payment
In addition, the Settlement establishes 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.
Important Dates in Plaid Class Action Settlement
The dates below are important to know in the Plaid class action settlement:
- January 1, 2013 to November 19, 2021 – you’re eligible if you connected a financial account using Plaid within this date range
- April 28, 2022 – final day to submit a claim
The Bottom Line
There’s an extremely high probability that most readers of The Money Ninja are eligible to make a claim under this $58 million Class Action Settlement with Plaid.
Plaid is the technology used to link thousands of different apps to your bank accounts, brokerage accounts, crypto accounts, etc. They’re also used for some card-linked offers, to connect different payment systems, and link various accounts to make transferring funds easier.
Among the thousands of mobile apps and platforms you might have used Plaid for, popular ones on this site include Robinhood, Webull, Coinbase, BlockFi, Fetch Rewards, Chime, GetUpside, Gemini, Dosh, Voyager, SoFi, and many more.
As a result of this Class Action Settlement, you’re now able to view and manage the connections Plaid has made between your financial accounts and the applications using Plaid, and delete data stored in Plaid’s systems by creating a Plaid Portal account, at https://my.plaid.com.
A class action settlement of $58 million might sound like a lot, but keep in mind this amount will be divided by all the people submitting a eligible claim. If there are a ton of claims, the paid amount per person will be lower than expected.
Having said that, I submitted a claim like I have always done in every class action settlement that I was eligible for. It took me less than three minutes.
Sometimes I only get a $5 payment for a claims submission, other times I’ve received checks for over $100 – rolling the dice here because you never know (and it’s free).