A California federal judge has denied class certification in a data privacy lawsuit against Yodlee, Inc., finding that the proposed class representatives lacked Article III standing and failed to satisfy Rule 23’s typicality and adequacy requirements.  Covington represents Yodlee in this action.  Clark v. Yodlee, No. 20-cv-05991-SK (N.D. Cal.)

Plaintiffs filed the putative class action complaint against Yodlee in August 2020, alleging that Yodlee – a technology company that provides business-to-business services to financial institutions and fintech clients – unlawfully collected, stored, and used bank transaction data and account information from consumers who used Yodlee’s Instant Account Verification (“IAV”) service to link bank accounts to various financial apps.  By the class certification stage, the case had been narrowed to five plaintiffs asserting claims against Yodlee for violation of California’s Anti-Phishing Act (“CAPA”), invasion of privacy under the California Constitution and common law, and unjust enrichment.

Plaintiffs moved to certify a nationwide class and a California class.  After full briefing, supplemental briefing, and oral argument, the district court denied plaintiffs’ motion in its entirety on the grounds that the proposed class representatives lacked Article III standing and also failed to demonstrate typicality or adequacy.  Specifically, the court concluded there was no evidence that Yodlee had collected bank transaction data for any of the proposed class representatives, which data was central to plaintiffs’ claims and the sole basis for their compensatory damages theories.  The court further concluded any claims by these proposed class representatives “would not be reasonably co-extensive with absent class members.”  The court applied well-established precedent on standing and typicality/adequacy in holding that the case could not proceed as a class action. 

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Photo of Kanu Song Kanu Song

Kanu Song is a litigator who represents clients in the technology and life sciences industries in complex commercial disputes, including class actions, trade secret litigation, contract disputes, and actions brought under unfair competition and consumer protection laws. She has substantive experience in all…

Kanu Song is a litigator who represents clients in the technology and life sciences industries in complex commercial disputes, including class actions, trade secret litigation, contract disputes, and actions brought under unfair competition and consumer protection laws. She has substantive experience in all stages of litigation, including arbitrations and appeals, with a strong track record of success on dispositive motions.

Kanu also maintains an active pro bono practice focused on serving women and children, and assisting individuals and small businesses with intellectual property disputes.

Photo of Eric Bosset Eric Bosset

Eric Bosset is a senior counsel whose practice encompasses a broad range of complex litigation matters, with an emphasis on (1) privacy, data security and consumer protection, (2) employment and ERISA, and (3) financial products and services. Eric has extensive experience in class…

Eric Bosset is a senior counsel whose practice encompasses a broad range of complex litigation matters, with an emphasis on (1) privacy, data security and consumer protection, (2) employment and ERISA, and (3) financial products and services. Eric has extensive experience in class actions, MDL proceedings, and other multi-party lawsuits. His trial victories include a jury verdict in an employment class action lawsuit that The National Law Journal ranked among the 25 most notable defense verdicts of the year.

Privacy and Consumer Protection

Eric was named “Most Valuable Player” in Privacy & Consumer Protection by Law360. He has an extensive practice representing Internet service providers, publishers and advertisers in class action litigation involving claims of unauthorized collection and disclosure of personally identifiable information (“PII”). He has successfully represented Microsoft, AOL, CBS, McDonald’s, Mazda, the Indianapolis Colts, and other companies in obtaining the dismissals of putative class action lawsuits that asserted federal law claims under the Electronic Communications Privacy Act (“ECPA”), Computer Fraud and Abuse Act (“CFAA”), and Video Privacy Protection Act (“VPPA”), as well as state law claims under the Illinois Biometric Information Privacy Act (“BIPA”) and for unfair practices, trespass, and invasion of privacy.

Eric also represents companies in connection with matters arising under the Fair Credit Reporting Act (“FCRA”), Fair and Accurate Credit Transaction Act (“FACTA”), Telephone Consumer Protection Act (“TCPA”), and other consumer protection statutes.

Employment and ERISA

Eric has extensive experience defending companies in individual and class action litigation brought under federal and state laws concerning discrimination, retaliation, whistleblowing, wage and hour disputes, and wrongful termination, as well as in class action litigation involving the Employee Retirement Income Security Act (“ERISA”). Eric has the rare distinction of having tried and won a jury verdict in a class action lawsuit alleging “pattern or practice” discrimination on the basis of age in connection with a corporate reduction in force. Bush, et al. v. Deere & Company (C.D. Ill.). He also secured the reversal on appeal of a class certification order in a “stock drop” lawsuit that claimed breaches of fiduciary duty in the administration of a company retirement savings plan. In re Schering Plough Corporation ERISA Litig., 589 F.3d 585 (3d Cir. 2009). Eric also represents clients in EEOC investigations.

Financial and Fintech

Eric’s practice includes the representation of financial and fintech companies on a broad array of civil litigation, arbitration, and regulatory enforcement matters relating to financial products and services, including matters for Wells Fargo Bank, JPMorgan Chase, Synchrony Bank, Envestnet, Yodlee, and MidFirst Bank.