Allstate Class Action Lawsuit: Driving Data Sold Without Consent

Case Overview: A lawsuit accuses Allstate of secretly collecting and selling consumer driving data without consent, building a massive database for profit.

Consumers Affected: U.S. consumers whose data was collected by Allstate through the Arity software development kit.

Court: U.S. District Court for the Northern District of Illinois

Insurance giant Allstate is facing a lawsuit that claims the company unlawfully harvested and sold sensitive driving data from millions of Americans—without their knowledge or consent.

The lawsuit, filed in Illinois federal court, alleges that Allstate and its subsidiaries built the “world’s largest driving behavior database” by secretly collecting data from mobile apps and in-car devices, then profiting from its sale to third parties, Insurance Business reports.

Plaintiffs Claim Data Sold to Third Parties for Profit

A group of 25 plaintiffs is suing Allstate Corp., along with several of its subsidiaries, including Arity LLC, the insurer’s data-focused division. According to the lawsuit, Allstate used sophisticated tracking technology to collect detailed driving information, including GPS location, speed, altitude, and movement patterns, without informing users or obtaining consent.

Allstate amassed trillions of miles of consumer driving data from over 45 million Americans, the complaint states. The plaintiffs argue that this information was then sold to other insurance companies and businesses to maximize profits, all while customers remained unaware of the extent of the tracking.

Allstate's Data Practices Face Mounting Legal Challenges

This isn’t the first time Allstate has been accused of privacy violations. In 2024, the company agreed to a $3.3 million settlement over claims that it recorded consumer calls without permission, allegedly violating California’s Invasion of Privacy Act.

More recently, in January, Texas Attorney General Ken Paxton filed a lawsuit against Allstate and Arity, accusing them of unlawfully collecting and selling personal data from millions of drivers across the U.S. Paxton’s office claims Allstate paid mobile apps millions of dollars to install tracking software, allowing the insurer to gather data on both customers and non-customers. Texas is seeking penalties of up to $17,000 per violation of state insurance laws, plus restitution for affected consumers.

Another class action lawsuit, also filed in Illinois earlier this year, raised similar concerns. That case, brought by three drivers, alleges Allstate secretly collected data through third-party apps and sold it to other businesses, further fueling controversy over the insurer’s data practices.

As legal challenges mount, Allstate faces increasing scrutiny over how it handles consumer data—and whether it’s playing fair with its customers. In this case, the plaintiffs want to represent anyone in the US whose data was collected by Allstate through the Arity software development kit.

Plaintiffs' Attorneys

• Milberg Coleman Bryson Phillips Grossman PLLC
• Cotchett, Pitre & McCarthy LLP

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