Lemonade to pay $10.5M to settle data breach class action over driver’s license data

Lemonade data breach class action overview:

• Who: Plaintiff Leslie Linwood Rich and other consumers reached a proposed class action settlement with Lemonade Inc.
• Why: Plaintiffs claim Lemonade exposed driver’s license numbers through its online insurance quote platform.
• Where: The proposed class action settlement was filed in New York federal court.

Lemonade has agreed to pay $10.5 million to resolve a class action lawsuit alleging its online insurance quote platform exposed the driver’s license numbers of approximately 190,000 individuals.

The class action lawsuit alleges Lemonade designed a feature on its platform that automatically populated personal data, allowing third parties to access driver’s license numbers when basic information, such as a person’s name and address, was entered.

Plaintiff Leslie Linwood Rich and other class members allege the data exposure occurred over a 17-month period between April 2023 and September 2024 and allowed cybercriminals to misuse the information.

According to the complaint, the exposed data was used to solicit fraudulent loans, access retirement accounts and make unauthorized credit card charges.

Rich claims he was not even a Lemonade customer and had not provided his driver’s license information to the company yet still received notice that his data had been compromised.

The class action lawsuit alleges Lemonade’s actions constitute negligence and violations of consumer protection and privacy laws, including the New York General Business Law and the federal Drivers’ Privacy Protection Act.

Lemonade settlement would provide cash payments, credit monitoring

Under the proposed settlement, class members may receive approximately $55 in cash payments, subject to deductions for attorneys’ fees and other costs.

In addition, the settlement provides three years of credit monitoring and identity protection services, with a stated retail value of nearly $720 per person.

The agreement also covers individuals across the United States whose personal information was compromised and who received notice of the data breach.

Lemonade has also implemented changes to its data security practices following the incident, according to the plaintiffs.

Class counsel plan to seek attorneys’ fees of up to one-third of the settlement fund.

Were you affected by this Lemonade data breach? Let us know in the comments.

The plaintiffs are represented by Melissa R. Clark of Ahdoot & Wolfson P.C., Mark B. DeSanto of Berger Montague and John A. Yanchunis of Morgan & Morgan P.A.

The Lemonade data breach class action lawsuit is In re Lemonade Inc. Data Disclosure Litigation, Case No. 1:25-cv-04106, in the U.S. District Court for the Southern District of New York.

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