Lemonade, Inc. Terminates Warrant Agreement with Chewy and Discloses Technical Data Exposure

New York, NY — April 9, 2025 — Lemonade, Inc. (NYSE: LMND) has announced two key developments: the termination of its warrant and omnibus agreements with Chewy Insurance Services, LLC, and the disclosure of a technical issue that exposed certain customer data during its car insurance quote process.

Termination of Chewy Agreements

Effective April 4, 2025, Lemonade terminated the Warrant Agreement and the Omnibus Agreement, both dated October 14, 2022, with Chewy Insurance Services, LLC. Under the Warrant Agreement, Chewy had already vested and exercised 181,191 warrant shares. The remaining 3,170,834 warrant shares have now been cancelled. Despite the termination of these two agreements, the agency relationship among Lemonade, its subsidiaries, and Chewy remains in force.

Data Exposure Incident

Lemonade also disclosed that it recently discovered a technical vulnerability in its car insurance quote system. The issue involved a misconfiguration that allowed certain data, including driver’s license numbers, to be transmitted without encryption during the API communication process with a third-party data provider.

Approximately 190,000 individuals were affected, and Lemonade has taken corrective actions to resolve the issue. The company emphasized that its internal systems were not compromised and that there is no evidence of targeted exploitation. The incident has been assessed as non-material to the company’s operations or financial condition.

Lemonade will notify the impacted individuals and relevant regulatory authorities in accordance with legal requirements.

Forward Outlook

While the terminated agreements reflect a narrowing of its partnership with Chewy, Lemonade continues to maintain its insurance agency collaboration with the pet-focused e-commerce company. The company has also reinforced its commitment to data security and customer trust following the incident response.

Lemonade did not disclose any financial impact arising from either development.