Plaid to Pay $58 Million to Settle Data Privacy Class Action

Plaid Inc. will pay $58 million in a settlement over allegations that it violated users’ privacy rights by scraping their data from third parties, after a federal judge in California granted final approval of the deal.

James Cottle brought the class action against against the San Francisco-based financial technology company, claiming that it used consumers’ banking login credentials to harvest and sell detailed financial data without their consent.

US Magistrate Judge Donna M. Ryu of the US District Court for the Northern District of California at Oakland granted final approval of the deal Wednesday.

The settlement includes $5,000 for each ...