Allegiance Administrators $450,000 Class Action Settlement

Consumers who entered into an excess wear and tear protection waiver agreement for a leased vehicle, submitted a claim that Allegiance Administrators and/or Autoguard Advantage denied for a reason not listed in the agreement’s terms and received a notice about this case may be eligible to claim a cash payment from a class action settlement.

Allegiance Administrators and Autoguard Advantage Corp. agreed to pay $450,000 to settle a class action lawsuit alleging they improperly denied certain claims lease customers made under these waiver agreements.

Who are the class members?

Class members must meet all of the following criteria:

• They entered into an excess wear and tear protection waiver agreement with Allegiance Administrators or Autoguard Advantage Corp. for a leased vehicle.
• They submitted at least one eligible claim for coverage under the waiver agreement.
• Allegiance Administrators or Autoguard Advantage denied their claim for a stated reason that is not a valid ground for denial under the actual terms and conditions of the waiver agreement.

The settlement administrator identified 736 class members who fit these criteria. If someone received a notice, it is because records indicate they are a class member.

How much can class members get?

The total settlement fund is $450,000, but the settlement administrator will reduce this amount by court-approved attorneys’ fees, litigation costs and service awards to the class representatives before it distributes payments. Eligible class members will receive a share of the settlement fund based on the amount of their denied claim(s) compared to the total denied claims of all class members.

Additional details:

• The net amount available for distribution is called the adjusted common fund.
• The settlement administrator will calculate each class member’s payment as (their denied claim amount ÷ total denied claims of all class members) × adjusted common fund.
• No class member will receive more than the value of their denied claim(s).
• If there are leftover funds (for example, if some class members do not cash checks), the settlement administrator may conduct a second distribution if the leftover amount is significant (over 20% of the adjusted common fund). Otherwise, it will distribute the remainder to a court-approved charity (cy pres).

No action needed to receive payment

Class members do not need to file a claim to receive their payment. The settlement administrator will automatically send a check to the address on file. Those who need to update their address can do so online.

Class members who wish to opt out must send a written request by mail or email that Includes their name, address, telephone number and signature to the settlement administrator by July 21, 2026.

Settlement administrator’s mailing address: Cohen v Allegiance Administrators, c/o Settlement Administrator, PO Box 23680, Jacksonville, FL 32241

Settlement administrator's email address: info@WearAndTearWaiverSettlement.com

Payout options

The settlement administrator will issue payments by check to the address on file. Class members must cash their checks within 120 days of issuance.

$450,000 settlement fund breakdown

The $450,000 settlement fund covers:

• Attorneys’ fees: Up to $150,000
• Attorneys’ expenses: To be determined
• Service awards to class representatives: $7,500 each for three representatives ($22,500 total)
• Payments to approved class members: Remainder of the fund

The defendants will also pay up to $20,000 in settlement administration costs separately from the above fund.

Important dates

• Deadline to opt out: July 21, 2026
• Final approval (fairness) hearing: Nov. 6, 2026

When is the Cohen v. Allegiance Administrators payout date?

The settlement administrator will distribute payments no later than 15 days after the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Allegiance Administrators and Autoguard Advantage Corp. denied claims under excess wear and tear protection waiver agreements for reasons the actual contract terms did not support.

The companies deny any wrongdoing but agreed to settle to avoid the cost and risk of continued litigation.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ
4. Key dates