Intuit class action lawsuit overview:
- Who: A group of plaintiffs filed a class action lawsuit against Intuit Inc. and Credit Karma LLC.
- Why: The plaintiffs claim the companies failed to maintain reasonable account security and customer protection measures.
- Where: The Intuit class action lawsuit was filed in California federal court.
A new Intuit class action lawsuit alleges Intuit and Credit Karma failed to maintain reasonable account security and customer protection measures for Credit Karma Money checking and savings accounts.
Plaintiff Chris Falco and seven others claim Intuit and Credit Karma’s alleged failures to design, implement and oversee adequate safeguards against fraud and unauthorized access caused them, and thousands of other consumers, to suffer financial losses, unauthorized withdrawals and account lockouts.
“Despite receiving prompt notice of these unauthorized transactions, [Intuit and Credit Karma] failed to conduct reasonable investigations and failed to recredit affected accounts as required by the Electronic Fund Transfer Act,” the Credit Karma class action lawsuit says.
The plaintiffs want to represent a nationwide class and seven state subclasses of consumers who experienced unauthorized transactions, unauthorized access or loss of access to their Credit Karma Money accounts as a result of the companies’ alleged inadequate account security, fraud-prevention systems or customer-response practices.
Credit Karma account security falsely advertised, lawsuit claims
The class action lawsuit alleges Intuit and Credit Karma falsely marketed Credit Karma Money accounts as secure, reliable and suitable for everyday financial use.
“Contrary to these representations, the defendants’ account security systems are defective,” the Credit Karma class action says. “Thousands of users have reported fraudulent withdrawals from their Credit Karma Money accounts and extended account lockouts that prevent access to their own funds.”
The plaintiffs claim Intuit and Credit Karma violated the Electronic Fund Transfer Act and Regulation E and committed negligence, fraud by omission, breach of implied contract and unjust enrichment.
They demand a jury trial and request declaratory and injunctive relief and an award of actual, compensatory, consequential and general damages for themselves and all class members.
In other legal claims, a class action lawsuit accuses Intuit and its subsidiaries of violating the Military Lending Act by charging excessive fees on TurboTax refund advance loans.
Have you ever experienced unauthorized transactions or loss of access to a Credit Karma Money account? Let us know in the comments.
The plaintiffs are represented by Robert Mackey of the Law Offices of Robert Mackey; Melissa R. Emert and Gary Graifman of Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo P.C.; and Matthew Smith of Migliaccio & Rathod LLP.
The Intuit class action lawsuit is Falco, et al. v. Intuit Inc., et al., Case No. 5:26-cv-06451, in the U.S. District Court for the Northern District of California.
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Glad to hear about this settlement