TurboTax Users Reach $40 Million Settlement With Intuit

11.14.2020

Girard Sharp, acting as co-lead class counsel, has reached a $40 million class action settlement with Intuit, maker of TurboTax.

The plaintiffs moved for preliminary approval of the proposed settlement on November 12. Plaintiffs had alleged that Intuit misleadingly advertised its tax-return preparation services as “free” and charged fees to low-income and military taxpayers who were eligible to file a federal return for no charge under the IRS Free File Program.

If approved, the settlement is expected to return between $15 and $75 to class members who make a claim. The settlement also requires Intuit to follow the FTC’s online marketing guidelines and disclose the Free File Program—along with a taxpayer’s qualifications to file for free—on the TurboTax website.

The proposed notice of the settlement would be sent to approximately 19 million taxpayers, and would notify this class that those with incomes of $69,000 or less can file for free, providing a link to the IRS Free File web portal.

U.S. District Judge Charles R. Breyer is set to hear the motion for preliminary approval of the settlement on December 17.

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