Sometimes The Juice Is Worth The Squeeze

A proposed class of approximately 190,000 individuals is asking the Southern District of New York for preliminary approval of a $10.5 million settlement with Lemonade Inc. The case concerns allegations that the insurer’s online quote platform negligently disclosed drivers’ license numbers to cybercriminals. The fact pattern in this case is very similar to a NYAG settlement we discussed last year.

According to the filings, Lemonade’s online quotation platform included an auto-populate feature that disclosed an individual’s driver’s license number when basic information was entered. That information included commonly-known things like name and address. Plaintiffs allege threat actors used the auto-populate functionality to obtain driver’s license numbers over a 17-month period. The threat actors then used this information to commit fraud and identity theft. As a result, Plaintiffs’ claims include violations of the New York General Business Law and the Federal Drivers’ Privacy