Lemonade insurance biometric privacy $4M class action settlement

Lemonade, an insurance company, agreed to pay $4 million to resolve class action lawsuit claims it violated Illinois biometric privacy laws with video claim submissions.

The settlement benefits a nationwide class of Lemonade policyholders who provided first notice of loss through a video claim submission between June 25, 2019, and May 27, 2021. 

The settlement also includes a subclass of the same class members who live in Illinois. Eligible consumers would have submitted video claims from which Lemonade could have collected, captured, otherwise obtained or disclosed biometric identifiers, such as facial geometry.

Lemonade is an insurance company that offers policies for renter’s insurance, homeowner’s insurance, auto insurance, pet insurance and term life insurance. Lemonade policyholders have the option to submit a video as part of their insurance claim process.

According to Lemonade policyholders, the insurer violated consumer privacy rights by collecting biometric information from video submissions without consent. This collection and storage of biometric information allegedly violates Illinois’ Biometric Information Privacy Act (BIPA).

BIPA regulates the way businesses can collect, store and share biometric data such as fingerprints, facial geometry scans, and more. Under BIPA, companies must get consent before collecting or sharing biometrics and are required to follow strict standards when retaining and destroying this information.

Lemonade allegedly fails to follow these regulations, putting consumers at risk for having their biometric data stolen or misused.

Lemonade hasn’t admitted any wrongdoing but agreed to resolve these allegations with a $4 million settlement deal.

The settlement provides cash payments to members of both the national class and Illinois subclass. Of the settlement fund, $1 million will be used to fund payments to the nationwide class, while the remaining $3 million will be used to fund Illinois subclass payments. 

Each class member will be able to recover a proportional share of whichever funds they are eligible for. No payment estimates are available at this time.

In addition to providing cash payments, the settlement provides non-monetary relief to help protect class members’ rights. 

Lemonade stopped collecting biometric information from video submissions in May 2021 and, within a week of final approval, will delete all previously collected biometric data. If the company chooses to collect this data in the future, it has promised to comply with BIPA and other applicable privacy laws.

The deadline for exclusion and objection in the settlement is Aug. 8, 2022. 

The final approval hearing is scheduled for Aug. 25, 2022. Class members are not required to attend this hearing but may ask to do so if they wish to speak to the court about the settlement.

In order to receive a payment from the Lemonade class action lawsuit settlement, class members must submit a valid claim form by Aug. 22, 2022.

Who’s Eligible

The settlement benefits a nationwide class of Lemonade policyholders who provided first notice of loss through a video claim submission between June 25, 2019, and May 27, 2021. 

The settlement also includes a subclass of the same class members who live in Illinois. Eligible consumers would have submitted video claims from which Lemonade could have collected, captured, otherwise obtained or disclosed biometric identifiers, such as facial geometry.

Potential Award

TBD

Proof of Purchase

Class members will need to provide their name, mailing address, email address, phone number, the address for the property that is the subject of their claim (if different from their current contact address) and certification. If additional information is required, the settlement administrator will contact the class member.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

08/22/2022

Case Name

Clarke, et al. v. Lemonade Inc., et al., Civil Action No. 2022LA000308 in the Circuit Court of 18th Judicial Circuit, DuPage County, Illinois

Final Hearing

08/25/2022

Settlement Website

LemonadeBIPASettlement.com

Claims Administrator

Lemonade Settlement Administrator
P.O. Box 5376
Portland, OR 97228-5376
info@lemonadeBIPAsettlement.com
866-977-1153

Class Counsel

MILBERG COLEMAN BRYSON PHILLIPS GROSSMAN PLLC

SCOTT+SCOTT ATTORNEYS AT LAW LLP

FREED KANNER LONDON & MILLEN LLC

LYNCH CARPENTER LLP

BURSOR & FISHER PA

Defense Counsel

BAKER & HOSTETLER LLP