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

A New York City-based insurance firm is setting aside millions of dollars to compensate victims of a data breach that occurred more than one and a half years ago.

According to the settlement website, insurance company Lemonade Inc has agreed to set up a $10.5 million fund to compensate victims of a data breach that exposed personal information, including driver’s license numbers (DLNs).

Per the consolidated class action lawsuit filed in August of 2025, the data breach took place after Lemonade Inc, in its own self-interests, “knowingly and willfully designed and implemented” a feature on its online quoting platform that disclosed driver’s license numbers.

“Unsurprisingly, Defendants’ [Lemonade Inc] profit-seeking conduct quickly caught the attention of opportunists, who utilized Defendants’ Quote Platform to obtain the highly sensitive DLNs of approximately 190,000 consumers, including Plaintiffs, over the course of 17 months.”

The data breach occurred between April of 2023 and September of 2024, but Lemonade Inc discovered it in March of 2025.

Settlement class members who possess documents showing losses that are directly linked to the data breach are eligible to receive up to $10,000 each. Alternatively, the settlement class members will get a cash payment that will be decided on a pro rata basis.

Settlement class members who wish to receive cash benefits must submit claims by September 8th. A final approval hearing for the settlement will be held on September 10th.

All victims of the data breach will automatically get credit monitoring and insurance services for three years. This will include identity theft insurance coverage worth up to $1 million.

Despite agreeing to the settlement, Lemonade Inc denies any wrongdoing.

Generated Image: Midjourney