Digital insurance company Lemonade is facing a class-action lawsuit for allegedly leaking the driver’s license numbers of approximately 190,000 drivers. The lawsuit alleges that its online auto insurance quotation platform has technical vulnerabilities, which led to the leakage of user data from April 2023 to September 2024, violating federal regulations such as the Driver Privacy Protection Act. Although Lemonade promised to fix the vulnerability after it was discovered in March 2025, the plaintiff claimed that it failed to act in time, resulting in some users suffering from identity theft and financial fraud.
Arizona resident Leslie Rich, as the lead plaintiff, accused fraudsters of using leaked driver’s license information to apply for loans in her name and steal funds from her retirement account. The lawsuit points out that Lemonade’s platform fails to verify users’ identities and allows automated tools to batch obtain driver’s license numbers, effectively becoming a “driver’s license search tool”. The proposed class-action lawsuit covers non-Lemonade customers who believe that the company has contributed to large-scale data abuse.
This is the latest lawsuit against the data breach of the online insurance quotation system. Previously, the state of New York had imposed fines on companies such as Root and GEICO for similar behaviors, and in March 2025, it sued Allstate for leaking information of 165,000 New Yorkers. In 2024, Lemonade also reached a $5 million settlement with social media platforms for illegally sharing user data. This lawsuit demands compensation and mandatory strengthening of data security measures.
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