Lemonade Insurance Sued for Alleged Age, Gender Bias in Ads

Case Overview: Lemonade Insurance faces a lawsuit for allegedly excluding older women from seeing its ads on social media, violating civil rights laws.

Consumers Affected: California women over 40 who were excluded from Lemonade Insurance ads on Facebook in the last three years.

Court: Superior Court of the State of California, County of San Diego

Lemonade Insurance Company violates civil rights laws by allegedly excluding older people and women from seeing its insurance advertisements on social media, a new lawsuit alleges. 

The lawsuit claims that the insurer uses Meta’s ad-targeting tools to limit its digital marketing to younger audiences, denying other demographics access to information about its insurance products and services.

According to the complaint, this practice effectively allows Lemonade to handpick its customer base in a way that would otherwise be illegal under anti-discrimination laws. The lawsuit argues that advertisements for insurance products are valuable not only for the company but also for consumers who rely on them to make informed decisions about their financial security.

Lemonade Accused of Excluding Older Women in Ad Targeting

73-year-old California resident Darcy Matthews filed the proposed class action lawsuit alleging that she has been systematically excluded from Lemonade’s digital marketing campaigns on Facebook. As an active social media user interested in insurance products, she says she was denied the opportunity to see ads that could have helped her compare coverage options.

The lawsuit details how Lemonade’s ad-buying process involves selecting the age, gender, and location of its target audience. Matthews argues that Lemonade intentionally set its audience parameters to exclude women and older users, thereby denying them access to the same information provided to younger men.

Lawsuit Alleges Violation of California Civil Rights Laws

California’s public accommodation laws require businesses to provide equal access to their services regardless of gender or age. The lawsuit cites a recent California appellate court decision, which confirmed that targeting digital ads based on these protected characteristics is a violation of the state’s anti-discrimination laws.

The complaint argues that Lemonade’s alleged practice of excluding women and older individuals from receiving its ads amounts to modern-day digital redlining. By selectively steering its advertising, the company is accused of reinforcing existing inequalities in the insurance market, where women and seniors have historically faced hurdles in obtaining fair coverage.

Lemonade Joins Other Insurers Facing Legal Challenges

Lemonade isn’t the only insurance provider under legal scrutiny. GEICO is currently facing allegations that it misleads consumers about its Accident Forgiveness coverage. Plaintiffs claim that while the policy is marketed as protecting drivers from rate hikes after their first accident, the company later imposes steep surcharges.

Meanwhile, Allstate is battling a lawsuit accusing it of secretly collecting and selling driving data from millions of Americans without consent. The complaint alleges that the company built an extensive behavioral tracking database, profiting from sensitive user information. In 2024, Allstate settled a $3.3 million case over claims it recorded consumer calls without permission, allegedly violating privacy laws.

In the Lemonade gender bias class action lawsuit, Matthew wants to represent other California women over 40 who used Facebook in the last three years and were denied access to Lemonade’s ads. She is suing for violations of California’s Unruh Civil Rights Act and is seeking damages, injunctive relief, fees, costs, and interest.

Case Details

• Lawsuit: Matthews v. Lemonade Insurance Co.
• Case Number:3:25-cv-00545-JLS-DDL
• Court: Superior Court of the State of California, County of San Diego

Plaintiffs' Attorneys

• Jahan C Sagafi and Alina Pastor-Chermak (Outten & Golden LLP)

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