Pindrop Receives Third Circuit Ruling on Illinois BIPA Financial-Institution Exemption

Pindrop said the U.S. Court of Appeals for the Third Circuit issued a precedential opinion classifying its voice authentication services as activities connected to banking. The decision addressed whether Pindrop qualifies as a “financial institution” under the Illinois Biometric Information Privacy Act, which affects consent requirements tied to biometric data collection.

The case involved allegations that Pindrop used plaintiffs’ voiceprints to authenticate calls to John Hancock without first obtaining consent under the Illinois Biometric Information Privacy Act. The court treated the dispute through BIPA’s financial-institution exemption, which incorporates the definition of “financial institution” from the federal Gramm-Leach-Bliley Act.

Pindrop’s position in the opinion turned on how the court characterized voice authentication services. The Third Circuit held that voice authentication services supporting financial transactions constitute “financial activities” under GLBA’s regulations, which exempt Pindrop from BIPA. The court affirmed dismissal of all claims against Pindrop in the published, precedential opinion.

In the company’s statement, Pindrop’s Chief Legal Officer Clarissa Cerda said, “The Third Circuit’s ruling reflects what Pindrop has built from the beginning. When Pindrop authenticates a voice for a financial transaction, that is not a technology service operating at the edge of financial services — the court confirmed it falls squarely within the federal framework governing financial activities. Pindrop operates under GLBA’s comprehensive privacy and security standards — the same standards our financial institution customers are bound by. For the compliance and legal teams at financial institutions making infrastructure decisions, that alignment is not incidental. That is the point. Our customers do not need to wonder what rules govern us. They already know — because they follow them too.”

The company said the Third Circuit’s decision in McGovern et al. v. Amazon Web Services, Inc., No. 24-3215, was issued May 12, 2026.

Provided by Globe Newswire on behalf of Pindrop. Click to read original content.