The Allstate Corporation, a major player in the insurance industry, faces a class-action lawsuit alleging illegal data collection practices. On February 5, 2025, a group of plaintiffs filed a complaint in the United States District Court for the Northern District of Illinois against The Allstate Corporation and its subsidiaries. The lawsuit accuses Allstate of covertly collecting and selling extensive driving data from millions of Americans without their consent.
According to the complaint, plaintiffs Delia Arellano and others allege that Allstate and its affiliates collected vast amounts of personal data through mobile applications without user knowledge or consent. This data included detailed geolocation information and driving behaviors such as speed and acceleration. Plaintiffs claim that this information was used to create driver profiles, which were then sold to third parties, including other insurance companies. "Defendants conspired to covertly collect and sell 'trillions of miles' of consumers’ driving data," states the complaint, accusing Allstate of building what they describe as "the world’s largest driving behavior database."
The plaintiffs argue that this practice not only violates privacy rights but also breaches several federal and state laws. They assert that users were never informed about the data collection or given an opportunity to consent. Furthermore, they allege that the gathered data is unreliable since it does not accurately determine whether users were actually driving at the time of data collection. As a result, insurance companies might have used this flawed data to unjustly increase premiums or deny coverage.
The lawsuit seeks damages for affected individuals across various states, along with injunctive relief to prevent further unauthorized data collection by Allstate. Plaintiffs are demanding compensation for loss of privacy and control over their personal information. They also seek restitution for any financial harm caused by increased insurance rates due to inaccurate driver profiles generated from their unlawfully collected data.
Representing the plaintiffs are attorneys from several law firms who have taken on this high-profile case against one of America's largest insurers. The case is presided over by judges in the Northern District Court under Case No.: 1:25-cv-01256.