Mitek Systems Unable to Force Arbitration of State Privacy Claim

Mitek Systems Inc. lost its bid to arbitrate a privacy suit against it based on a third-party lease agreement between its customer and the lessee suing the company, with a ruling by the Seventh Circuit Wednesday.

HyreCar is an intermediary between people who own cars and those who want to drive for services like Uber and GrubHub. Before leasing a car, HyreCar sends the applicant’s information and a photograph to Mitek, which verifies the information. Joshua Johnson claimed in an Illinois court that Mitek used his information without his consent in violation of the Illinois Biometric Privacy Act, and Mitek ...