07:39 AM EST, 01/14/2025 (MT Newswires) -- Allstate ( ALL ) and its Arity unit are facing a lawsuit filed by Texas Attorney General Ken Paxton over their alleged violation of the state's data privacy and security laws, according to a statement from the Attorney General's office on Monday.

The Attorney General accused the companies of paying app developers to integrate a software that tracks consumers' driving data in mobile apps, without their consent, and using this data to create a driving behavior database that serves as insurers' basis for raising insurance rates.

"Our investigation revealed that Allstate ( ALL ) and Arity paid mobile apps millions of dollars to install Allstate's ( ALL ) tracking software," said Attorney General Paxton, adding that the companies then sold the data to insurance firms.

Allstate ( ALL ) and Arity did not immediately respond to MT Neswires' requests for comments.