John Hancock life insurance lawsuit overview:
- Who: The U.S. Court of Appeals for the Third Circuit ruled in favor of Amazon Web Services Inc. and Pindrop Security Inc. in a biometric privacy lawsuit brought by Illinois consumers.
- Why: Plaintiffs claimed their voices were analyzed to create biometric voiceprints during calls with John Hancock without the notice and written consent required by Illinois law.
- Where: The decision was issued by the Third Circuit Court of Appeals.
- How to get help: If you lived in Illinois and called John Hancock about life insurance, long-term care insurance or annuities between Jan. 31, 2019, and Jan. 11, 2021, you may qualify to join the John Hancock class action investigation.
A federal appeals court has narrowed the reach of Illinois’ Biometric Information Privacy Act (BIPA) in a lawsuit involving voice authentication technology used during customer service calls.
The lawsuit, McGoveran v. Amazon Web Services, was brought by Illinois residents who alleged their voices were analyzed without consent when they called John Hancock regarding life insurance, long-term care insurance and annuities.
According to the complaint, John Hancock used Amazon Connect to route customer service calls while software developed by Pindrop Security allegedly analyzed callers’ voices to create biometric voiceprints for identity verification.
The plaintiffs argued the practice violated BIPA because they allegedly were not provided the notice and written consent required before biometric identifiers were collected.
The Third Circuit affirmed dismissal of the claims against Amazon Web Services and Pindrop.
The court concluded Pindrop qualified for BIPA’s financial institution exemption because it provided fraud detection and identity verification services to financial institutions. The panel also determined the alleged conduct involving Amazon occurred primarily outside Illinois, placing it beyond BIPA’s territorial reach.
The ruling follows an earlier decision by the district court dismissing the claims against both companies.
Appeals court leaves broader BIPA protections intact
Although the defendants prevailed, the Third Circuit emphasized that its decision was limited to the facts presented in the case.
According to the opinion, future BIPA claims must establish both that the defendant actually collected or possessed biometric identifiers and that the relevant conduct occurred primarily and substantially within Illinois.
The decision does not eliminate BIPA’s protections for biometric information or prevent future lawsuits involving different defendants or different factual circumstances.
The case also highlights the growing use of voice authentication technology by companies in the insurance and financial services industries. Unlike passwords, biometric identifiers, such as voiceprints, generally cannot be changed if compromised, making Illinois’ consent and disclosure requirements an important source of privacy protection.
Meanwhile, attorneys continue investigating potential claims involving alleged voiceprint collection during certain calls with John Hancock. The investigation concerns Illinois residents who called John Hancock between Jan. 31, 2019, and Jan. 11, 2021, regarding life insurance, long-term care insurance or annuities.
Did you make a qualifying call to John Hancock life insurance while living in Illinois? Let us know in the comments.
The plaintiffs are represented by Andrew D. Schlichter and Sean E. Soyars of Schlichter Bogard LLC.
The John Hancock life insurance lawsuit is McGoveran v. Amazon Web Services Inc., et al., Case No. 24-3215, in the U.S. Court of Appeals for the Third Circuit.
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