Berger Montague Announces $10.5 Million Settlement in Lemonade Driver’s License Data Breach Litigation

Berger Montague, a leading national plaintiff law firm, announces that a $10.5 million settlement has been reached in a class action lawsuit against digital insurance company Lemonade, Inc., arising from a data breach that exposed the driver’s license numbers of approximately 190,000 individuals.

The litigation alleged that Lemonade failed to adequately safeguard sensitive personal information submitted through its online auto insurance application platform. According to court filings and regulatory disclosures, a technical vulnerability in Lemonade’s system allowed driver’s license numbers to be transmitted without standard encryption protections and potentially accessed without authorization between April 2023 and September 2024.

“This settlement reflects the serious consequences companies face when they fail to protect consumers’ most sensitive personal data,” said Shareholder Mark DeSanto. “Driver’s license numbers are a key piece of identity information, and companies that collect this data must take reasonable steps to secure it.”

Plaintiffs further alleged that Lemonade delayed detection of the issue for an extended period and failed to implement reasonable security measures to prevent automated data harvesting or unauthorized access. The exposed information—driver’s license numbers—constitutes highly sensitive personally identifiable information that can be used to facilitate identity theft and financial fraud.

Under the terms of the proposed settlement, Lemonade has agreed to establish a $10.5 million fund to compensate affected individuals and to implement enhanced data security measures designed to better protect consumer information going forward.

Berger Montague is one of the nation’s preeminent law firms focusing on complex civil litigation, class actions, and mass torts in federal and state courts throughout the United States. With more than $2.4 billion in 2025 post-trial judgments alone, the Firm is a leader in the fields of complex litigation, antitrust, consumer protection, defective products, environmental law, employment law, securities, and whistleblower cases, among many other practice areas. For over 55 years, Berger Montague has played leading roles in precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago; Malvern, PA; Minneapolis; San Diego; San Francisco; Toronto, Canada; Washington, D.C., and Wilmington, DE.