Zachary Bostick, individually and on behalf of himself and all others similarly situated v. Intuit, Inc. d/b/a TurboTax, Intuit TT Offerings, Inc., CK Progress, Inc. d/b/a Credit Karma LLC, MVB Bank, Inc., First Century Bank, N.A., Santa Barbara Tax Products Group, LLC, and Green Dot Bank

District Court, S.D. California·Decided September 11, 2026·No. 3:26-cv-01444·Unknown

Opinion

ZACHARY BOSTICK, individually and Case No.: 3:26-cv-01444-H-VET on behalf of himself and all others similarly situated, ORDER GRANTING DEFENDANTS’ MOTIONS TO DISMISS WITH Plaintiff, LEAVE TO AMEND v. [Doc. Nos. 31, 32, 33, 35.] INTUIT, INC. d/b/a TURBOTAX, PROGRESS, INC. d/b/a CREDIT KARMA LLC, MVB BANK, INC., BARBARA TAX PRODUCTS GROUP, LLC, and GREEN DOT BANK, Defendants. On May 15, 2026, Defendants Intuit, Inc. and Intuit TT Offerings, Inc. (“TurboTax”), CK Progress, Inc. (“Credit Karma”), First Century Bank, N.A. (“FCB”), Green Dot Bank (“Green Dot”), Santa Barbara Tax Products Group, LLC (“SBTPG”), and MVB Bank, Inc. (“MVB”) (collectively, “Defendants”) filed four separate motions to dismiss Plaintiff Zachary Bostick’s complaint. (Doc. Nos. 31, 32, 33, 35.) On July 27, 2026, Plaintiff filed a response in opposition to Defendants’ four motions to dismiss. (Doc. No. 52.) On August 31, 2026, Defendants filed their replies. (Doc. Nos. 57, 58, 59, 60.) On September 9, 2026, the Court took the matter under submission. (Doc. No. 61.) For the reasons below, the Court grants Defendants’ motions to dismiss with leave to amend. / / / Background The following factual background is taken from the allegations in Plaintiff’s complaint. Plaintiff is the dependent spouse of an active-duty service member and a resident of San Diego, California. (Doc. No. 1, Compl. ¶ 29.) Plaintiff is a “Covered Borrower” as defined by the Military Lending Act (“MLA”). (Id.) Defendant Intuit, Inc. (d/b/a “TurboTax”) is a California corporation with headquarters and its principal place of business in California. (Id. ¶¶ 30, 31.) Defendant Intuit Financial and Intuit TT Offerings, Inc. are subsidiaries of Intuit, Inc. with headquarters in Mountain View, California. (Id. ¶ 33.) Defendant CK Progress Inc. (d/b/a “Credit Karma”) has headquarters in Oakland, California. (Id. ¶ 35.) Defendant MVB Bank, Inc. (“MVB”) has headquarters in Fairmont, West Virginia. (Id. ¶ 36.) Defendant First Century Bank, N.A. (“FCB”) has headquarters in Commerce, Georgia. (Id. ¶ 37.) Defendant Green Dot Bank (“Green Dot”) has headquarters in Austin, Texas. (Id. ¶ 38.) Defendant Santa Barbara Tax Products Group, LLC (“SBTPG”) is a division of Green Dot Corporation. (Id. ¶ 38.) Around the 2024 tax filing season, Plaintiff used the TurboTax platform to prepare and electronically file his federal income tax return. (Id. ¶ 88.) In connection with filing his return, Plaintiff was offered the option to obtain a TurboTax Refund Advance Loan (the “Refund Advance Loan”), marketed as a short-term advance on his anticipated federal tax refund. (Id. ¶ 89.) The Refund Advance Loan was structured to be repaid automatically through interception of Plaintiff’s federal tax refund. (Id. ¶ 95.) Plaintiff applied for and obtained a Refund Advance Loan originated by FCB. (Id. ¶ 90.) As a condition of receiving a Refund Advance Loan, Plaintiff applied for and was approved for a Credit Karma Money Spend checking account provided by MVB. (Id. ¶¶ 91, 92, 94.) Upon approval, the Refund Advance Loan proceeds were disbursed into Plaintiff’s Credit Karma Money Spend Account. (Id. ¶ 93.) As a condition of receiving a Refund Advance Loan, Plaintiff was also required to authorize Green Dot to establish a temporary deposit account for the purpose of receiving his federal tax refund (the “Green Dot Deposit Account”) and authorize SBTPG to deduct from the Green Dot Deposit Account the amount of the Refund Advance Loan, TurboTax-related fees, and other charges. (Id. ¶¶ 96, 97, 98.) The refund-processing agreement governing Plaintiff’s transaction provides for transaction-based fees, including a $30.00 “Return Item Fee” and a $30.00 “Account Research and Processing Fee,” which may be deducted from the Green Dot Deposit Account and retained by SBTPG. (Id. ¶ 99.) Plaintiff’s Refund Advance Loan Agreement and refund-processing agreement both contain mandatory arbitration provisions and class action waivers. (Id. ¶¶ 102-104.) Plaintiff alleges Defendants’ standardized Refund Advance lending structure— requiring Plaintiff to open mandatory accounts, route refunds through temporary deposit accounts, authorize automatic repayment deductions, and waive judicial remedies— violates the Military Lending Act. (Id. ¶ 107.) In particular, Plaintiff’s complaint alleges claims for: (1) unlawful account access and refund interception in violation of the Military Lending Act 10 U.S.C. § 987, et seq.; (2) excessive military annual percentage rate in violation of the Military Lending Act 10 U.S.C. § 987, et seq.; and (3) unlawful arbitration and waiver in violation of the Military Lending Act 10 U.S.C. § 987, et seq. (Id. ¶¶ 129- 176.) By the present motions, Defendants move to dismiss Plaintiff’s complaint pursuant to Federal Rules of Civil Procedure 8 for improper pleading, 12(b)(1) for lack of standing, and 12(b)(6) for failure to state a claim upon which relief can be granted. (Doc. Nos. 31, 32, 33-1, 35.) Defendant MVB also moves to dismiss Plaintiff’s complaint pursuant to Federal Rules of Civil Procedure 12(b)(2) for lack of personal jurisdiction and 12(b)(3) for improper venue. (Doc. No. 35 at 12-18.) Discussion I. Legal Standards A. Rule 8 Federal Rule of Civil Procedure 8 requires every “pleading that states a claim for relief” to contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). “The propriety of dismissal for failure to comply with Rule 8 does not depend on whether the complaint is wholly without merit.” McHenry v. Renne, 84 F.3d 1172, 1179 (9th Cir. 1996). Instead, “[t]he Supreme Court's decision in Ashcroft v. Iqbal supplies the guidelines for applying Rule 8[.]” Gibson v. City of Portland, 165 F.4th 1265, 1287 (9th Cir. 2026). Under Iqbal, “the pleading standard Rule 8 announces does not require detailed factual allegations, but it demands more than an unadorned, the- defendant-unlawfully-harmed-me accusation. A pleading that offers labels and conclusions or a formulaic recitation of the elements of a cause of action will not do. Nor does a complaint suffice if it tenders naked assertion[s] devoid of further factual enhancement.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). “The goal [of Rule 8] is to provide sufficient notice so the parties and the court can focus litigation on the merits of a claim.” Gibson, 165 F.4th at 1287 (internal quotation marks omitted). B. 12(b)(2) Lack of Personal Jurisdiction Under Federal Rule of Civil Procedure 12(b)(2), a complaint may be dismissed for lack of personal jurisdiction. Fed. R. Civ. P. 12(b)(2). “Personal jurisdiction over a nonresident defendant is tested by a two-part analysis. First, the exercise of jurisdiction must satisfy the requirements of the applicable state long-arm statute. Second, the exercise of jurisdiction must comport with federal due process.” Dow Chemical Co. v. Calderon, 422 F.3d 827, 830 (9th Cir. 2005) (quoting

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Zachary Bostick, individually and on behalf of himself and all others similarly situated v. Intuit, Inc. d/b/a TurboTax, Intuit TT Offerings, Inc., CK Progress, Inc. d/b/a Credit Karma LLC, MVB Bank, Inc., First Century Bank, N.A., Santa Barbara Tax Products Group, LLC, and Green Dot Bank, (S.D. Cal. 2026).

Zachary Bostick, individually and on behalf of himself and all others similarly situated v. Intuit, Inc. d/b/a TurboTax, Intuit TT Offerings, Inc., CK Progress, Inc. d/b/a Credit Karma LLC, MVB Bank, Inc., First Century Bank, N.A., Santa Barbara Tax Products Group, LLC, and Green Dot Bank (Zachary Bostick, individually and on behalf of himself and all others similarly situated v. Intuit, Inc. d/b/a TurboTax, Intuit TT Offerings, Inc., CK Progress, Inc. d/b/a Credit Karma LLC, MVB Bank, Inc., First Century Bank, N.A., Santa Barbara Tax Products Group, LLC, and Green Dot Bank) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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