There are two separate Lemonade settlements, and which one matters to you depends on why you’re here. The biometric privacy case, La Febre v. Lemonade, closed to claims on May 16, 2025. The data disclosure case is still open: if you received a notice from Lemonade in April or June 2025 about your driver’s license number or other personal information being exposed through the company’s online quote platform, you have until September 8, 2026 to file a claim.
The Data Disclosure Settlement Is Still Open
This case concerns Lemonade’s online insurance quote platform, which allegedly exposed personal information, including driver’s license numbers, between April 2023 and September 18, 2024.
You qualify as a class member if you received a notice from Lemonade telling you your information was involved. Those notices went out in April 2025 and June 2025. The notice itself is the practical gatekeeper: if you got one, you’re almost certainly eligible.
Deadlines to Know
- Claim filing deadline: September 8, 2026. Online submissions must be completed by 11:59 p.m. ET; paper forms must be postmarked by that date.
- Opt-out deadline: August 7, 2026. Written exclusion requests must be postmarked by then.
- Objection deadline: August 7, 2026. Objections must be filed with the court and copies mailed to class counsel, defense counsel, and the settlement administrator, all postmarked by that date.
How to File
You can file online or by mail. The settlement website at lemonadedatadisclosuresettlement.com hosts the claim form and accepts electronic submission. Paper forms go to the settlement administrator and must be postmarked no later than September 8, 2026.
Keep proof of whatever you submit. Online filings generate a confirmation page, and that confirmation number is your record if a question comes up later. For paper claims, certified mail gives you a postmark receipt.
Opting Out or Objecting
Filing a claim is not your only option. Opting out means you give up any payment from the settlement fund but keep the right to sue Lemonade individually over the data exposure. That path only makes sense if you suffered significant individual harm that would justify separate litigation, which is uncommon for most class members. To opt out, mail a written exclusion request to the settlement administrator postmarked by August 7, 2026. Include your full name, current address, a statement that you wish to be excluded from the settlement class, and your signature.
Objecting is different. You stay in the class, you can still receive payment if the settlement is approved, and you tell the court you think some part of the deal, such as the payment amounts or the attorney fee request, is unfair. Objections must be filed with the court and mailed to all parties by August 7, 2026.
The Biometric Privacy Settlement Has Closed
La Febre v. Lemonade covered Illinois residents who submitted a video claim to Lemonade between June 25, 2019 and May 27, 2021. The lawsuit alleged that Lemonade’s automated claims system captured and analyzed facial geometry from those recordings without the written notice and signed release required by the Illinois Biometric Information Privacy Act.
Lemonade agreed to a settlement benefit cap of $4,995,000 to cover all approved claims, administrative costs, attorney fees, and the class representative’s incentive award. The claim deadline was May 16, 2025, and the court’s final approval hearing was scheduled for June 10, 2025 at 11:30 a.m. Eligible class members who filed valid claims could receive up to $14.86 each. If you missed the May 2025 deadline, you can no longer file a claim in this case.
How Much You Might Receive, and When
Class action settlement funds don’t go straight to class members. The court first approves deductions for the administrator’s costs, attorney fees for class counsel (in the biometric case, plaintiffs’ lawyers sought up to 35% of the fund), and any incentive payment to the named plaintiff. What’s left is divided among everyone who filed a valid claim, so the more people who file, the smaller each share becomes. The $14.86 maximum in the biometric case, drawn from a nearly $5 million fund, shows how that math plays out.
Payments typically arrive several months after the court grants final approval and any appeal period expires. Depending on what you select on the claim form, payment comes as a check or an electronic deposit.
Taxes on a Settlement Payment
Settlement payments for privacy violations like these are almost certainly taxable income. The IRS treats settlement payments as taxable unless they fall under a specific exclusion, and the main one is for damages received on account of physical injury or physical sickness. Biometric data collection and data exposure are not physical injuries, so payments from either Lemonade settlement would not qualify.
Expect to report any payment as income on your federal return for the year you receive it. Depending on the amount, the settlement administrator may issue a 1099. Even if no 1099 is sent because the payment is small, the income is still technically reportable.