Toronto-Dominion Bank on Oct. 14 filed a lawsuit against data aggregator Plaid Inc. in the U.S. District Court for the District of New Jersey, alleging Plaid infringed on TD's trademark and committed false advertising when consumers used Plaid's products to link consumers' bank accounts and financial data to other apps.

The lawsuit alleges Plaid created a user interface for financial services applications that unlawfully uses TD and TD Bank USA NA's trademarks, logo and color scheme to replicate their genuine login page, suggesting to consumers that they are entering their information in the bank's platform.

In a statement related to the lawsuit, TD Bank President and CEO Greg Braca said the company is taking legal action to protect its customers and brand after "repeated attempts to work through these issues with Plaid."

The San Francisco-based fintech company is already facing a class-action lawsuit over alleged data invasion and privacy issues. It also caught the ire of PNC Financial Services Group Inc. in 2019, when the bank blocked Plaid from using customer data because it did not follow PNC's own security protocols.

In its lawsuit, TD is asking the court to order Plaid to cease and desist its unauthorized use of TD's name, trademarks and logos when providing its services. The lawsuit also seeks for Plaid to pay statutory damages of up to $2.0 million for each type of service sold, offered for sale, or distributed under the TD marks, as well as actual and punitive damages caused by the acts, and all of TD's litigation expenses.

When reached for comment, Plaid said the companies' discussions were still ongoing and that the lawsuit was a surprise. Plaid's design is intended to help customers select the right account to link to their apps, the company said.

"We have been working with TD for quite some time, and are disappointed that they resorted to litigation and false allegations — Plaid is publicly known for never selling or renting consumers' personal information," the company said. "With people relying on fintech now more than ever, and governments advancing Open Banking in the U.S. and Canada, we take seriously our obligation to help people control their finances and choose the services they want."

Visa Inc. agreed to acquire Plaid for $4.9 billion in January.