New York Firm Handing Out Up To $10,000 Per Person in Settlement Over Data Breach That Exposed Personal Information

A major insurance firm based in New York City has allocated a substantial amount of money to compensate individuals impacted by a data breach that occurred over eighteen months ago. Lemonade Inc, the insurance company in question, has agreed to establish a $10.5 million fund to provide restitution to victims of a data breach that exposed personal information, including driver’s license numbers (DLNs).

The data breach was the subject of a consolidated class action lawsuit filed in August 2025. The lawsuit alleges that Lemonade Inc intentionally created and implemented a feature on its online quoting platform that disclosed driver’s license numbers for its own benefit. This action led to opportunists exploiting the platform to obtain the sensitive DLNs of approximately 190,000 consumers, including the plaintiffs, over a 17-month period between April 2023 and September 2024. Lemonade Inc only discovered the breach in March 2025.

Individuals who are part of the settlement class and can provide documentation demonstrating losses directly related to the data breach may be eligible to receive up to $10,000 each. Alternatively, cash payments will be distributed on a pro rata basis to settlement class members who do not have documented losses. Claims for cash benefits must be submitted by September 8th, with a final approval hearing scheduled for September 10th.

All victims of the data breach will receive automatic credit monitoring and insurance services for three years, including identity theft insurance coverage up to $1 million. Despite agreeing to the settlement, Lemonade Inc has denied any wrongdoing in relation to the data breach.

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