$10.5M Lemonade Settlement Resolves Class Action Lawsuit Over 17-Month Data Breach

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Lemonade, Inc. has agreed to a $10,500,000 settlement to resolve a class action lawsuit that alleged the insurance company failed to protect private consumer information from a data breach discovered in September 2024. 

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The proposed $10.5 million Lemonade class action settlement awaits preliminary approval from the court. If approved, the deal will cover all United States residents whose personal information was compromised in the 2024 Lemonade data breach, including anyone who was sent notice of the incident. 

Court documents state that private information belonging to approximately 190,000 people were potentially affected by the Lemonade data breach.   

ClassAction.org will update this page when the Lemonade data breach settlement website is live.

According to the settlement agreement, class members who submit a timely, valid claim form can receive up to $10,000 for out-of-pocket expenses incurred during or after April 2023 due to the data breach. Class members must submit third-party documentation, such as receipts or bank statements, to receive a documented-loss payment, the agreement says.

In addition to a documented-loss payment, class members can submit a Lemonade claim form to receive a cash payment of approximately $55. Per court documents, the final amount of this pro rata payment will depend on the total number of valid claims filed.

Additionally, the settlement agreement states that all class members will receive in their mailed class action settlement notice an activation code for three years of credit monitoring and identity theft insurance. This benefit will be made available to class members following preliminary approval of the settlement.

ClassAction.org will update this page with information on how to submit a Lemonade data breach settlement claim form when it is released by the settlement administrator.

Finally, as part of the proposed settlement, Lemonade has agreed to implement business practice changes meant to prevent the disclosure of confidential consumer information going forward.

The Lemonade class action lawsuit alleged that the insurer’s online quote platform automatically populated consumers’ private information, namely driver's license numbers, when basic identifying information was entered. According to the complaint, cybercriminals exploited this vulnerability to obtain consumers’ driver's license numbers over the course of 17 months between April 2023 and September 2024.

The plaintiffs’ unopposed motion for preliminary settlement approval was submitted to the court on April 15, 2026.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest open class action settlements.