Law Office of Henry B. LaTorraca Civil Trial Attorney

Intuit threatened with class action suit over TurboTax security

Two California women are plaintiffs in a lawsuit filed in San Francisco federal court accusing Intuit Inc. of failing in its duty to protect its TurboTax customers' private information despite advertising its software as secure. One of the women, who used the TurboTax software to file her taxes online in 2011, said in her lawsuit that TurboTax sent her a $242 bill in 2015 for filing a federal return and returns in four different states.

The other plaintiff alleges she also received a bill from TurboTax, but she had never used the software. The lawyers representing the women hope to expand the lawsuit into a class action because people throughout the country claim that TurboTax exposed their private information to criminals who used the software to file fraudulent returns.

According to the lawsuit, Intuit failed to address fraud with its software and violated California's Unfair Competition Law and Consumer Records Act. Allegedly, Intuit also did not inform victims of security issues.

Data from the Internal Revenue Service show sharp increases in fraudulent online tax returns. From 2010 to 2013, fraudulent filings jumped from 500,000 to nearly 2 million. A statement from Intuit denies that its software exposes its users to fraud. The company intends to defend itself.

A business confronted by a possible class action lawsuit could be exposed to high costs if damages are awarded to plaintiffs. An attorney familiar with the complexities of business litigation concerning product liability or fraud could help a business negotiate a settlement out of court or create a defense strategy when going to trial is necessary.

Source: Forbes, "Intuit Sued Over TurboTax Security And Identity Theft, Class Action Status Sought," Robert W. Wood, April 23, 2015

No Comments

Leave a comment
Comment Information

Creative Solutions for Complex Legal Issues

Map email us for a response

Contact the Law Office of Henry B. LaTorraca

Prospective clients are invited to contact attorney LaTorraca at 562-216-2942 for an initial lawyer consultation to discuss their legal matter.

*AV Preeminent is a certification mark of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the Bar and the judiciary. Martindale-Hubbell ratings fall into two categories - legal ability and general ethical standards.

Contact Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Follow Henry B. LaTorraca Via Social Media

400 Oceangate Suite 700 Long Beach, CA 90802-4306 Phone: 562-216-2942 Fax: 562-216-2943 Map & Directions

facebook google plus linkedin directions