Allegiance Administrators LLC $450,000 Wear & Tear Waiver Settlement, Check If You Qualify for a Payment, File Before July 21 — Shmuel Cohen et al. v. Allegiance Administrators, LLC et al., No. 2:20-cv-03411

The Allegiance Administrators LLC wear and tear waiver settlement — Cohen et al. v. Allegiance Administrators, LLC et al., Case No. 2:20-cv-03411 — is a class action case pending in the U.S. District Court for the Southern District of Ohio, Eastern Division, where eligible car lessees whose Excess Wear & Tear Protection Waiver claims were improperly denied can receive a pro-rata share of a $450,000 common fund without filing any claim form — checks will be mailed automatically if the settlement is approved.

Allegiance Administrators LLC Wear & Tear Waiver Settlement — Key Facts

Field	Detail
Settlement Amount	$450,000 common fund
Claim Form Required?	No — eligible class members receive checks automatically
Who Qualifies	Car lessees notified their Excess Wear & Tear Waiver claim was improperly denied by Allegiance Administrators or Autoguard Advantage Corporation
Estimated Payout Per Person	Pro-rata based on each member’s denied claim amount — varies by individual
Opt-Out / Objection Deadline	July 21, 2026
Settlement Status	Proposed — pending final court approval
Court & Case Number	U.S. District Court, Southern District of Ohio, Eastern Division, No. 2:20-cv-03411
Specific Law Alleged	Breach of contract; New York General Business Law §§ 349 and 350
Final Approval Hearing	November 6, 2026 at 1:30 p.m. CT, 85 Marconi Boulevard, Columbus, OH 43215
Settlement Administrator	American Legal Claim Services
Official Settlement Website	wearandtearwaiversettlement.com
Last Updated	June 2, 2026

Where Does the Allegiance Administrators LLC Wear & Tear Waiver Settlement Stand Today?

• The court has preliminarily approved the settlement, and a final approval (fairness) hearing is scheduled for November 6, 2026, at 1:30 p.m. at the U.S. District Court for the Southern District of Ohio, 85 Marconi Boulevard, Columbus, OH 43215.
• The deadline to opt out or object to the settlement is July 21, 2026.
• Payments will only be made if the court grants final approval — if the court does not approve the settlement, it becomes void and the lawsuit continues.

Who Are Allegiance Administrators and Autoguard Advantage Corporation, and Why Are They Facing This Lawsuit?

Allegiance Administrators, LLC — operating under the name Performance First — and Autoguard Advantage Corporation are the two companies named as defendants in this case. They sell and administer Excess Wear & Tear Protection Waivers to car lessees — products that are supposed to cover damage charges at the end of a lease that go beyond what the lease agreement considers normal wear. These waivers purport to insure lessees against excessive wear and tear charges, subject to certain exclusions listed in the waiver’s terms and conditions. The lawsuit claims the companies denied valid claims using reasons that were never actually written into those terms — meaning consumers paid for protection they were not allowed to use.

What Did Allegiance Administrators Do to Car Lessees Who Paid for Wear & Tear Coverage?

Plaintiffs Shmuel Cohen, Yehuda Fischer, and Eliezer Rosenberger filed this lawsuit asserting that Allegiance Administrators and Autoguard Advantage Corporation improperly denied coverage under Excess Wear & Tear Protection Waiver Agreements for reasons not set forth in the terms and conditions of the Waiver Agreements.

For example, several consumers allege that the defendants denied their claims because they had a 12-inch or longer scratch — but the Waiver Agreement does not mention that scratch coverage ends at 12 inches. In plain terms: the contract said one thing, and the companies denied claims using rules that were never disclosed to buyers.

The lawsuit is based on breach of contract and violations of New York General Business Law §§ 349 and 350, which prohibit deceptive acts and false advertising directed at consumers. For context on how similar denied-claim cases against auto protection companies play out, the Endurance Warranty false advertising class action lawsuit and the CarShield FTC $9.6 million settlement both involve similar patterns of consumers paying for vehicle coverage and having legitimate claims denied. Both Allegiance and Autoguard tried to have the case dismissed — and both failed, with the court ruling in the plaintiffs’ favor and allowing the case to move forward.

If you leased a vehicle, paid for an Excess Wear & Tear Waiver administered by Allegiance Administrators or Autoguard Advantage Corporation, and had a claim denied, this settlement was reached directly because of what happened to you.

Related article: Banana Republic LLC $1,950,000 Wage & Hour Settlement, Check If You Qualify for a Payment, File For Claim Before July 21 — Weitz v. Banana Republic, LLC, Case No. 23STCV19287

Are You Part of the Allegiance Administrators LLC Wear & Tear Waiver Class Action?

Here is exactly how to know whether this settlement includes you.

You likely qualify if:

• You leased a vehicle and purchased an Excess Wear & Tear Protection Waiver administered by Allegiance Administrators, LLC (also known as Performance First) or backed by Autoguard Advantage Corporation
• You filed a claim under that Waiver Agreement and the claim was denied
• Your denial was based on a reason not listed in the actual written terms and conditions of your Waiver Agreement

You do NOT qualify if:

• You are an employee, officer, director, or affiliate of Allegiance Administrators or Autoguard Advantage Corporation
• You have already filed your own separate lawsuit against these defendants and need to preserve that case — if you have a pending lawsuit against the defendants, speak to your lawyer immediately, as you may need to opt out to continue your own case
• You formally opt out before the July 21, 2026 deadline

Allegiance Administrators Class Members Outside Ohio — Are You Still Covered?

Yes. This case is a federal class action filed in the Southern District of Ohio, which means it covers class members nationwide. The lawsuit was brought on behalf of all consumers who signed Excess Wear & Tear Protection Waivers with these defendants — the court’s jurisdiction is not limited to Ohio residents. If you leased a vehicle anywhere in the country, paid for one of these waivers, and had a valid claim improperly denied, you are part of the class regardless of what state you live in.

If you are unsure whether you qualify for the Allegiance Administrators LLC wear and tear waiver settlement, a free consultation with a consumer rights lawyer can help you assess your situation before the July 21, 2026 opt-out and objection deadline.

What Are Allegiance Administrators Class Members Asking the Court to Award in the 2020 Wear & Tear Waiver Case?

A common fund of $450,000 has been established to pay all approved claims to the settlement class, together with court-approved attorneys’ fees and costs to class counsel and service awards to the class representatives.

What Could Allegiance Administrators Car Lessees Receive If the Wear & Tear Waiver Case Settles?

Settlement class members will be paid a pro-rata amount of the adjusted common fund equal to their denied claim under the Waiver Agreement — adjusted by any deductibles or payout maximums — as a proportion of the total unpaid claims of all class members. In no event will payment to any class member exceed the amount of the claim that was allegedly improperly denied.

That means your individual check is tied directly to how much your denied claim was worth, compared to the total denied claims of everyone in the class. Someone with a $3,000 denied claim receives a proportionally larger share than someone with a $500 denied claim. The exact dollar amount cannot be predicted until the court approves the settlement and the total claims are calculated. Attorneys’ fees of up to one-third of the common fund, plus litigation costs, and service awards of $7,500 to each of the three class representatives (totaling $22,500) will be deducted from the fund before pro-rata payments are calculated.

You can check your specific estimated award by visiting the Estimated Award Eligibility page at wearandtearwaiversettlement.com and entering your Notice ID and PIN from the notice you received.

A consumer rights lawyer can help you evaluate whether your individual denied claim amount justifies opting out to pursue a separate lawsuit instead.

What Should Allegiance Administrators Car Lessees Do Right Now?

Step 1 — Understand that you do not need to file a claim form. You will automatically receive a check at the address used to provide the settlement notice — no action is required to receive payment, as long as you remain in the class and the settlement receives final approval.

Step 2 — Make sure your mailing address is current. To update your address, go to the Update Address page at wearandtearwaiversettlement.com, or email the Settlement Administrator at [email protected] with “Change of Address” in the subject line, providing your full name, previous address, current address, and the Notice ID from your notice.

Step 3 — Locate your original Waiver Agreement and any denial letters. Keep a copy of everything related to your lease return, the damage inspection, and the denied claim. This documentation matters if you are considering objecting or opting out.

Step 4 — Decide whether to stay in, opt out, or object. Staying in gets you the automatic payment but releases your right to sue separately. Opting out preserves your right to pursue your own case but means no settlement payment.

Step 5 — If you choose to opt out, send a written Exclusion Letter postmarked no later than July 21, 2026, to: Cohen v. Allegiance Administrators, c/o Settlement Administrator, PO Box 23680, Jacksonville, FL 32241. The letter must include the case name and number, your full name, address, phone number, and signature, with a clear statement that you want to be excluded.

Step 6 — Once the settlement is approved and checks are distributed, you will have 120 days to negotiate (cash or deposit) your check. Do not let it expire.

Should Allegiance Administrators Class Members Opt Out or Object Before July 21, 2026?

What Does Opting Out of the Allegiance Administrators Wear & Tear Settlement Mean for Your Rights?

If you opt out, you will not receive payment and cannot object to the settlement — but you will not be bound by it either. That means you keep the right to sue the defendants or be part of another case against them about the issues in this lawsuit. Most class members should not opt out unless they have a strong individual claim worth more than their pro-rata share, and they have already consulted an attorney about pursuing it separately.

How to Object to the Allegiance Administrators Settlement Terms Before July 21, 2026

To object, you must send a written objection postmarked no later than July 21, 2026, to the Settlement Administrator at PO Box 23680, Jacksonville, FL 32241. The objection must be in writing, include the case name and number (Cohen, et al. v. Allegiance Administrators, LLC, et al., 2:20-cv-03411), your full name, address, and phone number, the reasons for your objection, and your signature. You can object to the settlement terms, the attorneys’ fees, or both — and you can still receive a payment even if you object. If you are considering objecting, speaking with a class action lawsuit attorney before the July 21, 2026 deadline is strongly recommended.

Allegiance Administrators LLC Wear & Tear Waiver Lawsuit — Timeline

Milestone	Date
Lawsuit filed (Case No. 2:20-cv-03411)	2020
Allegiance motion to dismiss — denied	2021–2023
Class certification granted	Per court order (see documents at wearandtearwaiversettlement.com)
Settlement Agreement reached	2025–2026
Preliminary Approval Order entered	TBD — pending confirmation from court docket
Opt-Out / Objection Deadline	July 21, 2026
Attorneys’ fee request filing deadline	July 6, 2026
Final Approval (Fairness) Hearing	November 6, 2026 at 1:30 p.m. CT
Expected Payment Distribution	TBD — after final approval and any appeals are resolved

Allegiance Administrators LLC Wear & Tear Waiver Settlement — Frequently Asked Questions, No. 2:20-cv-03411

Is there a class action settlement against Allegiance Administrators LLC for improperly denying wear and tear waiver claims?

Yes. Allegiance Administrators LLC and Autoguard Advantage Corporation have agreed to a $450,000 class action settlement in Cohen et al. v. Allegiance Administrators, LLC et al., Case No. 2:20-cv-03411, pending in the U.S. District Court for the Southern District of Ohio. The court still needs to grant final approval at the November 6, 2026 fairness hearing.

Do I need to file a claim form to receive an Allegiance Administrators settlement payment?

No claim form is required. If the settlement is approved and you do not opt out, you will automatically receive a check at the address on file with the settlement administrator. However, if you do nothing and do not update your address, your check may go to an old address — update your information at wearandtearwaiversettlement.com.

When will Allegiance Administrators settlement payments be sent to class members?

Payments will be distributed only after the court grants final approval at the November 6, 2026 hearing and after any appeals are resolved. The exact payment date is not yet confirmed.

Do I need a lawyer to participate in the Allegiance Administrators wear and tear waiver settlement?

No. Class counsel — Daniel A. Schlanger and Evan S. Rothfarb of Schlanger Law Group LLP, and Mathew R. Wilson of Meyer Wilson Werning Co., LPA — represent all class members at no cost to you. Their fees, up to one-third of the $450,000 fund, will be paid from the settlement and must be approved by the court.

Can I file my own lawsuit against Allegiance Administrators for my denied wear and tear claim instead of joining this settlement?

Yes, but only if you formally opt out before July 21, 2026. If you stay in the class, you release your claims against the defendants and cannot start, continue, or be part of any other lawsuit against them about the issues in this case. Speak to a consumer rights lawyer before the deadline if you believe your individual denied claim is worth pursuing separately.

How will I know if the Allegiance Administrators case receives final approval?

Monitor the official settlement website at wearandtearwaiversettlement.com for updates. The final approval hearing is November 6, 2026, and the date could change without additional direct notice to class members.

What specific laws does Allegiance Administrators allegedly violate in this case?

The lawsuit is based on breach of contract and violations of New York General Business Law §§ 349 and 350, which prohibit deceptive acts and practices and false advertising that harm consumers. The core allegation is that the defendants entered into waiver agreements they had no intention of honoring according to their own written terms.

How much could Allegiance Administrators car lessees receive from this wear and tear waiver settlement?

Each class member’s payment is a pro-rata share of the adjusted common fund, proportional to their denied claim amount relative to the total denied claims of all class members — and no payment can exceed the amount of the individual’s denied claim. No money is available until the court grants final approval. If you want an estimate of your specific share, enter your Notice ID and PIN at the Estimated Award Eligibility page on wearandtearwaiversettlement.com. A consumer rights lawyer can help you assess whether your share is fair given your individual circumstances.

Sources Used in This Allegiance Administrators LLC Wear & Tear Waiver Settlement Article

Official FAQ — Cohen et al. v. Allegiance Administrators, LLC et al., Case No. 2:20-cv-03411, U.S. District Court, Southern District of Ohio: https://www.wearandtearwaiversettlement.com/page/faq

Key Dates — Official Settlement Website: https://www.wearandtearwaiversettlement.com/page/dates

Important Court Documents — Official Settlement Website: https://www.wearandtearwaiversettlement.com/page/docs

Schlanger Law Group LLP — Case background and court ruling summary: https://consumerprotection.net/car-lease-damage-waiver-class-action-survives-challenge/

Cohen v. Allegiance Administrators, LLC — Case law background: https://www.cetient.com/case/cohen-v-allegiance-administrators-llc-9914048

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against the official settlement administrator website (wearandtearwaiversettlement.com) and court documents filed in the U.S. District Court for the Southern District of Ohio, Eastern Division. Last Updated: June 2, 2026

This article is for informational purposes only and does not constitute legal advice. Laws vary by state and individual circumstances differ. For advice about your specific situation, consult a qualified attorney.