Lemonade $10.5 Million Data Breach Class Action Settlement

Danielle Toth

Editor

Published

June 9, 2026 5:09 PM

Updated

June 11, 2026

Who can file a claim?

The settlement class includes all living, natural persons residing in the United States whose personal information the Lemonade data exposure incident compromised, including those who received a notice in April or June 2025 informing them the breach compromised their personal information.

The class is estimated to include approximately 190,000 people.

How much can class members receive?

Class members may submit a claim for one or both of the following cash benefits:

Documented loss payment: Reimbursement of up to $10,000 for documented losses incurred on or after April 1, 2023, that are more likely than not traceable to the data breach
Cash fund payment: A pro rata cash payment from the remaining settlement fund after deductions for attorneys' fees and costs, settlement administration costs and service awards to class representatives.

Each class member will also automatically receive a unique code for three years of credit monitoring and insurance services, which includes up to $1 million in identity theft insurance and three-bureau credit monitoring.

How to claim a settlement payment

Class members can file a claim online or download, print and fill out the PDF claim form and mail it to the settlement administrator.

Settlement administrator's mailing address: In re Lemonade Inc. Data Disclosure Litigation, c/o Kroll Settlement Administration LLC, P.O. Box 225391, New York, NY 10150-5391

Class members do not need to submit a claim for credit monitoring.

The claim deadline is Sept. 8, 2026.

What proof or documentation is necessary to submit a claim?

For the documented loss payment, claimants must provide reasonable documentation showing the loss is more likely than not traceable to the data exposure, including credit card statements, bank statements, invoices, telephone records, screenshots and receipts. Self-prepared documents, such as handwritten receipts, are not sufficient on their own, but class members may use them to supplement other documentation.

If the class member does not provide documentation or the settlement administrator rejects the claim, it will consider the claimant for the cash fund payment instead.

Class members do not need to provide documentation for the cash fund payment or credit monitoring.

Payout options

If submitting an online claim, class members may select payment via Zelle, Venmo, PayPal or ACH transfer.
If submitting a paper claim form, class members can only receive payment via paper check.

$10.5 million settlement fund breakdown

The $10,500,000 settlement fund includes:

Settlement administration costs: Amount not specified
Attorneys’ fees: Up to $3,500,000
Attorneys’ expenses: To be determined
Service awards to class representatives: $2,000 each ($4,000 total)
Credit monitoring costs: Dependent on number of claims for this option
Payments to eligible class members: Remainder of the fund

Important dates

Deadline to opt out: Aug. 7, 2026
Deadline to file a claim: Sept. 8, 2026
Final approval hearing: Sept. 10, 2026

When is the Lemonade data breach settlement payout date?

The settlement administrator will issue payments within 30 days after it processes all claim forms or the court resolves any appeals and grants final approval, whichever is later.

Why did this class action settlement happen?

The class action lawsuit alleged unauthorized parties potentially accessed personal information, including driver’s license numbers, through Lemonade’s online insurance quote platform between April 2023 and Sept. 18, 2024. The plaintiffs claimed Lemonade was negligent and violated certain privacy and consumer protection laws, including the Driver’s Privacy Protection Act and New York General Business Law Section 349.

Lemonade denies any wrongdoing but agreed to settle to avoid the costs and risks of ongoing litigation.