Capital One Now Enters Lawsuit For Illegal Distribution of Data

September 9, 2024

Capital One now enters a lawsuit for the illegal distribution of data, which was shared to tech giants Facebook, Microsoft, and Google.

A new class-action lawsuit claims that Capital One has engaged in an “outrageous, illegal, and widespread practice” of disclosing customers’ Nonpublic Personal Information and Personally Identifiable Financial Information without their consent, sharing this data with third parties such as Facebook, Google, and Microsoft.

The lawsuit alleges that Capital One secretly implemented code-based tracking technologies on its website, which have reportedly been in place since at least November 30, 2023, and as recently as June 24, 2024.

As an example, one of the lead plaintiffs, who had a similar experience to the other plaintiffs, described how he was targeted with Facebook ads for a product he had just signed up for on the Capital One website.

After applying for a Capital One Venture X credit card, he began seeing ads from NerdWallet and Credit Karma for various credit cards shortly thereafter.

The lawsuit claims that the personal and financial information Capital One allegedly collects includes account details, credit card application data, pre-approval information, users’ activity on certain pages, and details entered on pre-approval application forms, such as employment and bank account information.

The plaintiffs accuse Capital One of violating consumer protection laws, invading privacy, unjust enrichment, and breaching contracts.

They are seeking a jury trial along with both monetary and non-monetary relief.

As of the second quarter of this year, Capital One reported total assets of $630.89 billion.

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Citibank now fires a whistleblower for ‘underperformance’, after the former employee provided records requested by the OCC.

Citi has filed a countersuit against its former employee, Kathleen Martin, alleging that she was terminated not for refusing to falsify records for the Office of the Comptroller of the Currency (OCC), as she claimed in her lawsuit from May, but rather for being unable to properly fulfill the duties of her role.

Martin, who was let go from her position as Citi’s interim data transformation chair in September 2023 after nearly two years with the bank, had alleged in her lawsuit that she was fired for not agreeing to Chief Operating Officer Anand Selva’s request to conceal information from the OCC that would make the lender “look bad.”

In a revised lawsuit, Kathleen Martin has accused Citi’s Chief Operating Officer Anand Selva of intentionally deceiving the bank by wanting to misrepresent Citi’s compliance metrics to the Office of the Comptroller of the Currency (OCC).

Martin claims Selva sought to conceal information from the OCC that would have made the bank “look bad.”

However, Citi maintains that Martin’s termination in September 2023 was not due to her refusal to falsify records, but rather because she lacked the necessary “leadership and engagement skills” to effectively execute the role of interim Data Transformation Chair, which she had been appointed to after the previous chair, Rob Casper, departed the company.

Citi asserts that during Martin’s interviews and assessment for the interim role, it was identified that she needed to improve in areas like her “dogmatic nature, lack of innovation and lack of experience driving the execution of complex change across Citi.”

Once Casper left, Citi’s senior leadership, including COO Selva, determined that Martin could not successfully fulfill the demands of the interim chair position.

According to Citi, COO Anand Selva tried to help the plaintiff, Kathleen Martin, improve her performance in the interim Data Transformation Chair role.

Selva allegedly set up one-on-one meetings and working groups to facilitate better collaboration and working relationships with stakeholders.

Selva’s HR team also provided Martin with a senior mentor to support her development.

In May 2023, Citi leadership discussed a plan to improve Martin’s performance.

In July, Selva conveyed Martin’s mid-year review before she raised any concerns about his behavior.

Soon after, Martin contacted HR and expressed fears about her job security.

Citi claims that Martin “felt her position was at risk,” but the bank asserts that internal documents showed she “exceeded expectations” and that CEO Jane Fraser had commended her for her “gravitas” and ability to build “strong relationships” at the bank.

However, Citi says Martin failed to heed the feedback provided, and she was ultimately removed from the Data Transformation Chair role because she lacked the “executive level relationships” and leadership needed to successfully execute the data transformation efforts.

Citi says the data transformation work was too critical for the bank to tolerate Martin’s underperformance.

Citi denies Martin’s claims that she protested the reporting of a key metric accurately or that Selva objected to it.

The bank says Selva and Martin met in September 2023 to discuss reporting certain metrics using red, amber, and green scales.

Also Read: A Massive US Bank is Now Closing Credit Cards

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