New York company distributes up to $10,000 per person in settlement over data breach that exposed personal information.


A New York City-based insurance company has set aside millions of dollars to compensate victims of a data breach that occurred more than a year and a half ago.

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

According to the consolidated class action lawsuit foot In August of 2025, a data breach occurred after Lemonade Inc, in its own self-interest, “knowingly and willfully designed and implemented” a feature on its online citation platform that exposed driver’s license numbers.

“Not surprisingly, Defendants’ (Lemonade Inc.) profit-seeking conduct quickly caught the attention of opportunists, who used Defendants’ bidding platform to acquire highly sensitive DLNs for approximately 190,000 consumers, including Plaintiffs, over a 17-month period.”

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

Members of the settlement class who possess documents showing losses directly related to the data breach are eligible to receive up to $10,000 each. Instead, members of the Settlement Class will receive a cash payment that will be determined on a pro rata basis.

Members of the settlement class who want to receive cash benefits must file their claims by September 8th. The final settlement approval hearing is scheduled for September 10.

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

Although it agreed to the settlement, Lemonade Inc. denies any wrongdoing.

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