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Another class action lawsuit against Plaid has been filed citing the company violated user data privacy.
A new class action lawsuit complaint against fintech startup Plaid has been filed with more plaintiffs alleging the company violated the data privacy of users.Â
The new complaint filed on behalf of four new plaintiffs alleged that Plaidâwhich was bought by Visa for $5.3 billion this yearâcollected information on over 200 million distinct financial accounts who use services such as Venmo, Coinbase, Squareâs Cash App and Stripe.
The complaint states Plaid obtained âdirect and full access to consumersâ personal financial banking information for Plaidâs own commercial purposes wholly unrelated to the consumersâ use of the apps.â It adds:Â
âPlaid exploits its ill-gotten information in a variety of ways, including marketing the data to its app customers, analyzing the data to derive insights into consumer behavior, and, most recently, selling its collection of data to Visa as part of a multi-billion dollar acquisition. Plaid has unfairly benefited from the personal information of millions of Americans and wrongfully intruded upon their private financial affairs.â
This is the second class action complaint filed against Plaid. The first complaint, filed on June 25, alleged Plaid was âdata plumbingâ popular services like Venmo, Stripe, Cash App and Robinhood.Â
Cointelegraph reported Plaid has denied the accusations and said it has never sold user data. Coinbase also confirmed it does rely on Plaid for account verification but data has never been shared with the exchange.
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