Recommended Free Tools
The Plaid privacy settlement claim deadline passed on April 28, 2022. The administrator says payments on timely, valid claims began November 16, 2022, and that a further distribution was not economically feasible. The case may matter to people who connected financial accounts to apps such as Venmo or Robinhood, but using one of those apps alone did not establish eligibility.
What the lawsuit was about
The case, In re Plaid, Inc. Privacy Litigation, Case No. 4:20-md-03056, was brought in the U.S. District Court for the Northern District of California. It was a lawsuit against Plaid, not a lawsuit against Venmo, Robinhood, American Express, or Coinbase.
The complaint alleged that Plaid collected more financial information than an app needed and obtained login credentials through Plaid Link, which plaintiffs said could resemble a user’s bank login screen. Those were allegations, not court findings that the conduct occurred. The court-approved settlement notice says: “Plaid denies these allegations and any wrongdoing and maintains that it adequately disclosed and maintained transparency about its practices to consumers.”
Who the settlement covered
The settlement class was described as U.S. residents who connected a financial account to an app between January 1, 2013, and November 19, 2021, and met additional conditions involving Plaid’s access to the account using login credentials or the user’s provision of credentials through Plaid Link. The official settlement website provides an app and service search for checking whether an app used Plaid.
#1 Best Overall
Simply having used Venmo, Robinhood, American Express, Coinbase, or another financial app was not enough by itself. Eligibility depended on the account connection, relevant dates, residency, and Plaid-specific conditions in the class definition.
What the $58 million settlement did—and did not—mean
The settlement established a $58 million fund. That was the total fund, not a promised payment to each user. The fund was subject to administration expenses, court-approved attorneys’ fees and expenses, and service awards; individual payments depended on how many valid claims were submitted. The settlement notice estimated that about 5,000 mobile and web-based applications were involved.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Key deadlines and what happened afterward
| Event | Date and significance |
|---|---|
| Opt-out and objection deadline | March 4, 2022, according to the settlement notice. |
| Claim deadline | April 28, 2022. The claims process is closed. |
| Payments began | November 16, 2022, for timely, valid claims, according to the administrator. |
| Further distribution update | October 18, 2023. The administrator said another pro rata distribution was not economically feasible; remaining unclaimed funds went to court-approved cy pres recipients Privacy Rights Clearinghouse and Consumer Reports. |
The settlement website remains a place to review case information, but its past claim form is not an opportunity to file a new claim.
Quick Recap
What to take away if you used one of these apps
- The settlement concerned Plaid’s alleged data practices when connecting accounts to apps, not the general privacy practices of every named app.
- App use alone did not establish that a person met the settlement class definition.
- The deadline has passed, and the administrator reports that payments on valid, timely claims began in 2022.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
