Intuit class action claims co. failed to prevent TurboTax, Credit Karma data breach

Intuit class action lawsuit overview:

• Who: Plaintiff Joseph Garite filed a class action lawsuit against Intuit Inc.
• Why: Intuit allegedly failed to adequately safeguard sensitive data which was compromised in a TurboTax and Credit Karma data breach disclosed in March 2024.
• Where: The TurboTax data breach class action lawsuit was filed in California federal court.

Intuit Inc. failed to adequately protect its computer systems, leaving sensitive data vulnerable to a TurboTax and Credit Karma data breach earlier this year, according to a new class action lawsuit.

Plaintiff Joseph Garite alleges Intuit, the maker of popular software services including TurboTax, Credit Karma, Quickbooks and Mailchimp, failed to maintain reasonable security safeguards and failed to adequately train employees about cybersecurity.

Garite, a former TurboTax customer, claims these failures left Intuit’s systems vulnerable to cybercriminals, who allegedly infiltrated the networks and gained access to customers’ sensitive personal identifiable information (PII).

Victims of the Credit Karma and TurboTax data breach were allegedly not informed of the cyberattack until March 2024. Garite says the data breach notice failed to inform victims about pertinent information including when the breach first occurred, how many people were impacted and how cybercriminals were able to access Intuit’s systems.

Intuit “had no effective means to prevent, detect, stop or mitigate breaches of its systems—thereby allowing cybercriminals unrestricted access to its current and former customers’ PII,” Garite alleges.

The Intuit class action alleges the TurboTax data breach took place from Dec. 23, 2023 through Feb. 21, 2024 but the hack was not discovered until Feb. 27. The breach may have compromised the following types of PII:

• Names
• Addresses
• Birthdates
• Social Security numbers
• Driver’s license numbers
• Other information contained in victims’ tax returns

Plaintiff says he experienced fraud due to TurboTax data breach

Garite says he trusted Intuit with his PII and its commitment to protecting his sensitive data. Due to the TurboTax and Credit Karma data breach, his PII may be published imminently (if it has not already been published) on the Dark Web, the Intuit class action lawsuit alleges.

In fact, Garite claims he has already suffered from identity theft and fraud. He says he received a letter in May 2024, purportedly from the IRS, that contained highly sensitive information, including his Social Security number and the exact amount he owed on taxes in 2023. The IRS has reportedly confirmed the letter is fraudulent.

Garite filed the Intuit class action lawsuit on behalf of all U.S. residents whose PII was compromised in the data breach.

The Intuit class action lawsuit asserts claims for negligence, negligence per se, breach of implied contract, invasion of privacy, unjust enrichment, breach of fiduciary duty, declaratory judgment, and violation of California’s Unfair Competition Law and Consumer Privacy Act.

Last year, Intuit agreed to pay $141 million to settle allegations it improperly charged some consumers for TurboTax when they were eligible to file for free through the IRS’s Free File Program.

Were you affected by the TurboTax data breach or Credit Karma data breach? Tell us about your experience in the comments.

Garite is represented by Andrew G. Gunem of Strauss Borrelli PLLC.

The Intuit class action lawsuit is Joseph Garite v. Intuit Inc., Case No. 5:24-cv-03960, in the U.S. District Court for the Northern District of California, San Jose Division.

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