Plaid Class Action Settlement

Plaid Class Action Settlement

Updated: September 12, 2022

Settlement Status - Final Approval July 2022

Deadline: Expired

Estimated Payout: $13.50

Proof required: No

Method of payment: Paypal / Direct Deposit / Venmo

**This settlement is available for claimants with and without proof.**

What's This Settlement About?

A $58 Million 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). Some of the top bank accounts in the United States use Plaid to allow banking customers to connect between different financial services. This class action alleges Plaid took certain improper actions in connection with this process.

The allegations behind the Plaid Settlement and lawsuit 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.

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

Final Approval

The Plaid Settlement is closed as of September 10, 2022. Judge Donna Ryi, a judge for the US District Court in Northern California granted final approval for the $58 Million Class Action agreed upon with Plaid, Inc. More than a million consumers filed claims in the Plaid Class Action (see website below) to receive compensation from the $58 Million settlement fund. The original class action lawsuit alleged that consumers of Plaid's FinTech (Financial Technology) services abused had their privacy rights violated by recording their bank account activity and information with no prior consent.

How Do I Qualify?

This Class Action is now closed to any new claims. To stay up to date on current and upcoming class actions join's official newsletter:

What's Next After Approval?

Now that the Plaid Settlement has received final approval by a US District Court judge, the waiting period begins for any potential appeals to come through against the ruling made to approve the settlement agreement. This period of time can vary depending on many factors, but by some estimates can last as little as 30 days or be longer than 90 days. Once the period to allow appeals to be filed is over, the class action administrator may release some updates as to potential payout distribution dates on their site, which we will keep updated here.

What Can I Get?

The Plaid 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. Over a million claims have been filed as of September 10, 2022.

How Do I File a Claim?

The deadline for submitting a claim was April 28, 2022. Final approval was granted in July 2022 and the Plaid class action settlement is not currently accepting any more claims.