Plaid Agrees to Pay $58 Million to Settle Data Privacy Suit (1)

Plaid Inc. has agreed to pay $58 million to settle claims it violated users’ privacy rights by scraping their data from third parties.

Attorneys representing the plaintiffs, Plaid users who alleged privacy violations, moved Aug. 6 for preliminary approval of the settlement, according to documents filed in the U.S. District Court for the Northern District of California.

In addition to supplying the $58 million cash fund, the financial services company agreed to change the design of its standard interface, make “more fulsome” disclosures to consumers, and delete transactional banking data for consumers whose third-party apps didn’t request that data.

“This ...