Allstate faces major privacy lawsuit over cellphone tracking. A federal judge in Chicago ruled Tuesday that drivers can proceed with a class action lawsuit alleging the insurance giant illegally collected detailed cellphone data including location, speed, braking and phone use without consent. The company is accused of using this information to raise premiums, deny coverage and sell data to other insurers. Allstate's data analytics arm, Arity, allegedly embedded tracking software in apps like GasBuddy, Fuel360 and Life360. The judge allowed claims under laws of 20 states while dismissing three of 38 claims. Allstate maintains its privacy policies disclosed data collection, but the case combines 15 separate lawsuits and mirrors similar enforcement action filed by Texas in January 2025.