Insurer Allstate (ALL) is being sued by the state of Texas over claims the company is illegally capturing customer data through their cell phones and using this to justify higher premiums.
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Texas attorney general Ken Paxton said the company and its subsidiary Arity had built the “world’s largest driving behavior database,” with data on more than 45 million Americans.
Furthermore, the claim alleges the companies are paying mobile app developers “millions of dollars” to incorporate tracking software with the consent or knowledge of customers.
“The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law. Texans deserve better and we will hold all these companies accountable,” said Paxton in a statement.
The lawsuit follows one brought by Texas against General Motors (GM) for unlawfully collecting drivers’ private data and selling it to companies, including insurers. And there are several ongoing investigations into car manufacturers for secretly collecting and selling drivers’ detailed driving data.
ALL Makes Headlines for LA Fire Insurance Costs
ALL stock is one of a number of insurance companies to fall as the estimated cost from wildfires in Los Angeles continues to rise.
Nevertheless, analysts have been upgrading their price targets on the stock recently.
Robert Cox at Goldman Sachs raised his price target on the stock to $232 from $230 and reiterated a Buy rating. Also last week David Motemaden at Evercore ISI reitered a Buy rating and raised his price target to $226 from $205. Meanwhile, five-star analyst Meyer Shields at KBW upped his price target on ALL to $243 from $235, also sticking to a Buy rating.
Is ALL a Good Stock to Buy?
Overall, Wall Street has a Strong Buy consensus rating on ALL stock, based on 12 Buys, one Hold and one Sell. The average ALL price target of $228.21 implies 25% upside potential from current levels. Shares of ALL have risen 10% in the last six months.
