Home / Crime and Justice / Drivers Get $150 in GEICO CLUE Database Lawsuit
Drivers Get $150 in GEICO CLUE Database Lawsuit
22 Aug
Summary
- GEICO settled a lawsuit for $1.65 million over data in CLUE files.
- Around 7,200 drivers will receive approximately $150 each.
- The case concerns GEICO's handling of disputed claims data in CLUE reports.
A federal judge in Maryland is set to approve a settlement in January 2027, distributing roughly $150 to approximately 7,200 individuals. This outcome stems from a lawsuit, Kohama v. GEICO, filed in March 2024. The case alleged GEICO violated the Fair Credit Reporting Act by failing to properly reinvestigate disputed claims information before it was added to LexisNexis's CLUE database.
GEICO agreed to a $1.65 million settlement rather than contest the claims. The CLUE database compiles auto and home insurance claims for the past seven years, linked to individuals rather than vehicle identification numbers. Most drivers are unaware of their CLUE files, which insurers consult for policy renewals.
The lawsuit emphasized GEICO's duty under federal law to genuinely reinvestigate disputed claim entries. The complaint stated that GEICO's dispute process allegedly failed to do so, returning information as verified without actual reinvestigation, even when clearly inaccurate.
