$4.9M Lemonade Settlement Resolves Class Action Lawsuit Over Alleged Data-Sharing Violations

New to ClassAction.org? Read our Newswire Disclaimer

Lemonade, Inc. has agreed to pay a nearly $5 million settlement to resolve a proposed class action lawsuit that claimed the insurance company unlawfully disclosed prospective customers’ personal and medical data to third parties without consent.

Don’t miss the next class action settlement deadline. Sign up for ClassAction.org’s free weekly newsletter.

The official Lemonade class action settlement website is live and can be found at LemonadePrivacySettlement.com.

The $4,995,000 deal, which received preliminary court approval in late October 2024, covers anyone who accessed Lemonade.com directly or through affiliated websites Bestow.com or NorthAmericanCompany.com and entered answers to health-related questions on an application for life insurance in the United States between March 15, 2021 and September 28, 2023.

Class members who submit a valid claim form online or by mail by January 21, 2025 may receive a Lemonade settlement payout of up to $14.86.

Individual payment amounts may decrease on a pro rata basis, according to the agreement with Lemonade.

You can file a Lemonade settlement claim form online on this page, or you may download a PDF claim form to print and return by mail. To submit a claim online, you will need to provide your unique Class Member ID, which is typically found on the settlement notice you may have received.

In addition to providing cash payments to consumers, Lemonade has also agreed to suspend the disclosure of applicants’ private information to third parties, the settlement website shares.

A final approval hearing is scheduled for February 6, 2025. Eligible class members can expect to receive a settlement payout within 30 days after the deal is ultimately approved by the court and any appeals are resolved, the website says.

The lawsuit against Lemonade alleged that sensitive data collected from consumers applying for an insurance quote was illegally shared with third parties such as TikTok, Facebook and Snapchat without authorization. The class action suit contended that Lemonade’s conduct violated consumers’ privacy rights as well as federal and state law.

Check out ClassAction.org's lawsuit list for current class action lawsuits and investigations.