Consumers Affected
165,000
New York Attorney General Letitia James filed a lawsuit against National General and Allstate Insurance Company for two data breaches in 2020 and 2021 that exposed the driver’s license numbers of over 165,000 New York residents. The AG alleges National General failed to implement reasonable data security measures, did not notify consumers or state agencies of the first breach, and left systems vulnerable to a second larger breach after Allstate took over data security operations. The AG is seeking monetary penalties and an injunction to prevent further violations.
Attorney General James is seeking monetary penalties for National General’s failure to implement reasonable data security safeguards and notify consumers of breaches, along with an injunction to stop any continued violations. No final remedies have been imposed as the enforcement action is a pending lawsuit.
In-house legal teams at insurance companies and their vendors should review all data security provisions in vendor agreements to ensure they require reasonable safeguards against automated attacks, including monitoring for unauthorized access and breach detection protocols. Contracts should include clear breach notification timelines that comply with applicable state laws, specifically requiring prompt notice to consumers and regulators in the event of a data breach exposing personal information like driver’s license numbers. Additionally, clauses governing the protection of government-issued identification data (e.g., driver’s license numbers) should be updated to require encryption or masking of such data in public-facing systems, and to mandate that vendors notify the company immediately of any security incidents. Teams should also verify that contracts with acquired entities include provisions requiring the acquiring party to maintain or enhance existing data security measures post-acquisition.
Entity
National General and Allstate Insurance Company
Industry
InsuranceOfficial Press Release
https://ag.ny.gov/press-release/2025/attorney-general-james-sues-national-general-and-allstate-insurance-failing
state of new york v national general holdings corp et al com
https://ag.ny.gov/sites/default/files/court-filings/state-of-new-york-v-national-general-holdings-corp-et-al-complaint-2025.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"filed a lawsuit against several insurance companies doing business as National General and Allstate Insurance Company (Allstate)"
"March 10, 2025"
"New York Attorney General Letitia James"
"filed a lawsuit against several insurance companies doing business as National General and Allstate Insurance Company (Allstate)"
"suffered a pair of back-to-back data breaches that exposed the driver’s license numbers of more than 165,000 New Yorkers"
"failure to implement reasonable data security measures"
$5.0M
New York Attorney General Letitia James secured a settlement with cryptocurrency platform Uphold HQ, Inc. for misleading investors by promoting Cred’s fraudulent CredEarn investment product as a safe, reliable savings option when it involved risky loans to uncreditworthy borrowers. Uphold will pay $5 million to harmed investors, redirect $545,189 in Cred bankruptcy proceeds to affected customers, and implement enhanced due diligence policies for third-party investment products. Uphold must also register as a broker with the Office of the Attorney General.
New York Attorney General Letitia James led a bipartisan coalition of 24 state attorneys general, Puerto Rico, and New York City in sending letters to nine major credit card companies and payment processors urging them to block transactions facilitating illegal vaping product sales. The coalition cites federal and state laws prohibiting unauthorized e-cigarette sales, particularly to youth, and requests collaboration to prevent payment networks from processing such transactions. No enforcement penalties or actions were imposed as part of this initiative.
New York Attorney General Letitia James and Tennessee Attorney General Jonathan Skrmetti, leading a coalition of 40 state attorneys general, secured a jury verdict on April 15, 2026, against Live Nation and Ticketmaster for maintaining illegal monopolies in the live events industry. The jury found the companies engaged in anticompetitive practices including exclusive venue contracts, forcing competitors out of the market, and limiting artist performance choices, resulting in overcharged consumers. Remedies, including potential financial penalties and a monopoly breakup, are pending court approval.
New York Attorney General Letitia James, joined by 16 other states, sued the U.S. Department of Education over a new survey requiring colleges to submit extensive student data, arguing it violates the Administrative Procedure Act and threatens student privacy. The lawsuit seeks to block the mandate and prevent penalties for non-compliance.
A bipartisan coalition of 35 state attorneys general led by New York Attorney General Letitia James sent a demand letter to xAI on January 26, 2026, requiring the company to address its Grok chatbot’s creation and sharing of nonconsensual intimate images, including child sexual abuse material. The AGs demand that xAI implement safeguards to prevent Grok from generating such content, delete existing harmful content, suspend offending users, and give X users control over whether their content can be edited by Grok. No monetary penalty has been imposed as this is a pre-enforcement demand for action.
New York Attorney General Letitia James sent a letter to Instacart demanding information about its use of algorithmic pricing, after a study found users were charged up to 23% more for identical products. The AG warned that Instacart’s pricing disclosures are non-compliant with New York’s Algorithmic Pricing Disclosure Act, which requires prominent notices near product prices when personal data is used to set prices. Instacart must provide details on its pricing experiments, automated tools, and compliance efforts with the state’s disclosure requirements.