Financial Software Maker Yodlee Faces Data Privacy Claims

Consumers can proceed with a lawsuit accusing software maker Yodlee Inc. of using their passwords to continually collect and store their bank account transaction history, which it allegedly aggregates and sells, a federal court in California ruled.

Deborah Wesch and several other users of bank, wealth management, and payment websites or platforms adequately stated claims against Yodlee for invasion of privacy, deception, phishing, and unjust enrichment under California law, the U.S. District Court for the Northern District of California said Tuesday.

The consumers will have a chance to fix deficiencies in their claims under the federal Stored Communications Act, California’s ...