Federal Judge Denies Motion to Compel Arbitration in TurboTax Free-File Class Action

U.S. District Judge Charles R. Breyer today denied Intuit’s attempt to force three consumer plaintiffs to drop their class action claims against Intuit and proceed individually in private arbitration.

Girard Sharp is co-lead counsel for the consumer plaintiffs, who allege that Intuit, the maker of TurboTax, deliberately impeded access to a free online tax-filing program required by the IRS. The “Free File” program is intended to allow low-income taxpayers to prepare and file their federal and state taxes online for free. Plaintiffs allege that Intuit engaged in false advertising and deliberately concealed its free-filing program, steering customers instead to its paid tax-filing products.

Judge Breyer found that the plaintiffs did not receive adequate notice that signing into TurboTax meant agreeing to arbitrate their claims, and as a result, Intuit cannot force them out of court. So the plaintiffs’ class action claims will now proceed in federal court.

The Recorder also published a news story about the order denying Intuit’s arbitration motion.

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