Intuit, Inc., maker of TurboTax software, faces a class action lawsuit in California due to billions of dollars of fraudulent tax returns. The Department of Justice, Federal Trade Commission, Congress, and Milberg LLP are investigating the company.
Milberg LLP is looking for a possibility that Intuit may have ignored the issue despite knowing about it. Two former TurboTax security employees revealed it.
Christine Diaz and Michelle Fugatt also filed lawsuit against the company, especially Michelle who never used TurboTax yet received a bill from the software.
Intuit, Inc. receives class action lawsuit
Intuit, Inc., recently stopped its e-filing return program in February after the company received notices from various states that hundreds of dishonest tax filings were submitted through the TurboTax software, which resulted in the robbery of billions of dollars in fraudulent tax returns.
TurboTax users reportedly "filed a class action lawsuit" in California, accusing Intuit for failing to protect personal data. This included Social Security numbers that made various customers victims of identity theft.
The complaint was based on the allegation that Intuit violated the California Unfair Competition Law and Customer Records Act.
The Department of Justice, Federal Trade Commission and Congress made an investigation of the issue.
Milberg LLP investigates Intuit, Inc.
Class action law firm Milberg LLP is also investigating Intuit, Inc. for the possibility that the TurboTax software developer knew of the fraud yet chose to ignore it. Milberg LLP issued a press release and said that Intuit did say that they "noticed an increase in 'suspicious filings' and attempts from scam artists to use stolen personal information to file fraudulent state returns."
The law firm also revealed that there were already "two former TurboTax security employees" who came forward saying that "Intuit's knowledge of the fraud and that the company looked the other way in order to earn revenue for processing the fraudulent returns."
Two individuals file lawsuit against Intuit, Inc.
Further, there were two individuals who filed a lawsuit against Intuit for the company's failure in taking needed precautions to protect their personal information, failure in implementing "available security measures that would have stopped tax cybercriminals," and for not doing enough to let Intuit's customers know that their information was used unlawfully.
Plaintiff Christine Diaz learned that her identity was used for filing dishonest tax returns upon getting a $242 bill from TurboTax. The charge was not only for a federal tax filing, but also tax returns submitted in Michigan, Missouri, Ohio, and Oklahoma. Christian Diaz used TurboTax in 2011.
The other complainant, Michelle Fugatt, never used Intuit's software. However, she did also receive a charge from the company and was "forced to file a paper federal tax return, forcing her to wait longer for her refund."
Intuit, Inc. has yet to make latest statement about the issue.
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