June 25, a brand new class motion was filed in California towards fintech startup Plaid, which was acquired by Visa for $5.three billion earlier this yr. The plaintiffs allege that Plaid violated privateness and information protections by accumulating and monetizing monetary transactions of hundreds of thousands of customers.
The criticism alleges that the corporate collected this information by “data plumbing” in style companies like Venmo, Stripe, Square’s Cash App and Robinhood. It purports that Plaid knew:
“Every dollar you deposit or withdraw, every dollar you charge or pay to your credit card, and every dollar you put away for retirement, within hours after you make the transaction. Imagine this includes every book or movie ticket or meal you purchase, every bill you pay to a doctor or hospital, and every payment you make (or miss) on your mortgage, student loan or credit card bill.”