New Media and Technology Law Blog

Category Archives: Alternative Data

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SEC Brings First Enforcement Action Against Alternative Data Provider

On September 14, 2021, the Securities and Exchange Commission (“SEC”) filed a settled securities fraud action against App Annie Inc., one of the largest sellers of market data on how apps on mobile devices are performing, and its co-founder and former CEO and Chairman Bertrand Schmitt.  The settlement is the first enforcement action brought by the … Continue Reading

Settlement in Plaid Fintech Data Case

On August 5, 2021, a proposed class action settlement was reached in the closely-watched privacy action against fintech services company Plaid Inc. (“Plaid”).  The settlement features a $58 million settlement fund and certain injunctive relief that would make changes to Plaid’s methods of notice and consumer data collection, including provisions requiring the deletion of certain … Continue Reading

Plaid Federal Electronic Surveillance Claims Dropped, Privacy Claims Survive

On April 30, 2021 a California district court trimmed various federal privacy-related claims, including the Computer Fraud and Abuse Act (CFAA) claim, from a highly-visible, ongoing putative class action against fintech services company Plaid Inc. (“Plaid”), but allowed other state law privacy claims to go forward.  The lawsuit involves Plaid’s alleged collection and use of … Continue Reading

Mobile Platforms to Block Data Broker from Collecting User Location Data

On December 9, 2020, the Wall Street Journal reported that Apple and Google will block the data broker X-Mode Social Inc. (“X-Mode”) from collecting location data from iPhone and Android users. Apple and Google have reportedly informed app developers to remove the X-Mode social tracking SDK from all of their apps within a short period … Continue Reading

Financial Data Aggregator Faces Consumer Privacy Suit over “Surreptitious” Collection of Banking Information

Last week, a putative privacy-related class action was filed in California district court against financial analytics firm Envestnet, Inc. (“Envestnet”), which operates Yodlee, Inc. (“Yodlee”). (Wesch v. Yodlee Inc., No. 20-05991 (N.D. Cal. filed Aug. 25, 2020)). According to the complaint, Yodlee is one of the largest financial data aggregators in the world and through … Continue Reading

Members of Congress Request FTC Investigation of Financial Data Company’s Collection and Privacy Practices

Last week, Democratic Senators Ron Wyden and Sherrod Brown and Congresswoman Anna Eshoo sent a letter to FTC Chairman Joseph J. Simons urging the agency to investigate whether analytics firm Envestnet, Inc. (which operates Yodlee) was violating the FTC Act. According to the letter, Yodlee is the largest consumer financial data aggregator in the United … Continue Reading

In Outlining Its 2020 Examination Priorities, SEC Expresses Interest in Alternative Data and Cybersecurity Risks

On January 7, 2019, the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) announced its 2020 examination priorities. In doing so, OCIE identified certain areas of technology-related concern, and in particular, on the issue of alternative data and cybersecurity. [For a more detailed review of OCIE’s exam priorities, see the Client Alert … Continue Reading

WSJ Article on Geolocation Data Highlights Risks for Fund Managers

Last week the WSJ published an article detailing how companies are monetizing smartphone location data by selling it to hedge fund clients.  The data vendor featured in the WSJ article obtains geolocation data from about 1,000 apps that fund managers use to predict trends involving public companies.  However, as we’ve noted, the use of alternative … Continue Reading
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