New York State Files Lawsuit Against Allstate for Failing to Disclose Data Breach Affecting 165,000 Residents – One America News Network
OAN Staff Abril Elfi
11:21 AM – Monday, March 10, 2025
The New York State Attorney General has accused the National General division of Allstate (ALL.N) of failing to report a significant data breach that exposed the driver license numbers of customers.
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The attorney general has further claimed that Allstate did not implement adequate safeguards to protect the private information of drivers.
On Monday, Attorney General Letitia James officially initiated the lawsuit in court.
She asserted that National General’s inadequate data security led to breaches in 2020 and 2021. During this period, hackers allegedly targeted the company’s online auto insurance quoting tools, compromising the license numbers of more than 165,000 New Yorkers — a total of approximately 199,000 customers.
The lawsuit alleges that National General failed to notify the affected customers and New York authorities about the first breach, which took place between August and November of 2020. Moreover, it is claimed that it took three months to identify the second breach, occurring in January 2021.
James maintained that National General violated the state’s Stop Hacks and Improve Electronic Data Security Act by not adequately securing customer data. She also accused the company of breaching state consumer protection laws by misleading customers regarding its data security practices.
The lawsuit seeks civil penalties of $5,000 for each violation.
In January 2021, Allstate acquired National General for approximately $4 billion.
Additionally, in January, Texas Attorney General Ken Paxton also announced that Texas was suing Allstate and its subsidiary, Arity, for the unlawful collection, use, and sale of data regarding Texans’ cell phone locations through covertly embedded software in mobile applications. “Texans deserve better, and we will hold these companies accountable,” he stated.
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