Cousin v. Sharp Healthcare

District Court, S.D. California·Decided July 12, 2023·No. 3:22-cv-02040·Unknown

Opinion

HANNAH COUSIN, et al., individually Case No.: 22-cv-2040-MMA (DDL) and on behalf of all others similarly situated, ORDER GRANTING DEFENDANT’S Plaintiffs,

v. [Doc. No. 15] SHARP HEALTHCARE, Defendant. This action consists of three consolidated cases brought by Hannah Cousin, Linda Camus, Deanna Franklin-Pittman, and Edward Barbat (“Plaintiffs”) against Defendant Sharp Healthcare (“Defendant” or “Sharp”). See Case Nos. 22-cv-2040-MMA (DDL), 23-cv-33-MMA (DDL), 23-cv-330-MMA (DDL). On March 3, 2022, Plaintiffs filed a Consolidated Class Action Complaint alleging that Defendant intentionally disclosed its patients’ sensitive health information, without their consent, to Meta Platforms, Inc. (“Meta”) through the procurement and embedding of an internet tracking tool, Meta Pixel, on its website. Doc. No. 14 (“CAC”). On April 4, 2022, the Defendant filed a motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6). Doc. No. 15. Plaintiffs filed an opposition, to which Defendant replied. See Doc. Nos. 17, 18. The Court found the matter suitable for determination on the papers and without oral argument pursuant to Civil Local Rule 7.1.d.1. See Doc. No. 19. For the reasons set forth below, the Court GRANTS Defendant’s motion to dismiss. I. BACKGROUND1 Defendant is a non-profit corporation that operates multiple hospitals and medical groups, and offers a healthcare plan, throughout San Diego, California. CAC ¶ 14. One such hospital operated by Defendant is Sharp Memorial Hospital (“Sharp Memorial”). Id. Plaintiffs are residents of California and Sharp patients, who used Defendant’s website, www.sharp.com, to either search for health care providers, schedule medical appointments, or conduct other health care related matters. Id. ¶¶ 10–13, 64. On June 16, 2022, “The Markup” published an article identifying Sharp Memorial as one of thirty-three hospitals across the nation that had installed and used Meta Pixel on its website. Id. ¶¶ 2, 32. The publication reported that Meta Pixel had collected patients’ sensitive health and personal information from Defendant’s appointment scheduling page and shared it with Meta. Id. ¶ 3. The sensitive information included, among other things, a patient’s medical condition, prescriptions, diagnoses, and test results. Id. ¶ 6. “The Markup” further stated that information sent to Meta included details about patient’s medical conditions, prescriptions, doctor’s appointments, and when paired with a patient’s IP address, could be used in combination with other data to identify a specific individual or household. Id. ¶ 30. Plaintiffs claim that Defendant failed to properly secure and safeguard their sensitive health information submitted on its website by installing and using Meta Pixel. Id. ¶¶ 1, 3. Plaintiffs assert that they were previously unaware of Defendant’s use of 1 Reviewing Defendant’s motion to dismiss, the Court accepts as true all facts alleged in the Consolidated Class Action Complaint and construes them in the light most favorable to the Plaintiffs. Meta Pixel, and that their information was being shared in such a way, until after the release of this article. Id. ¶ 106. Plaintiffs allege that Meta Pixel collected their sensitive information through the following process. Id. ¶¶ 19–29. Meta created Meta Pixel to improve their targeted advertising capability. Id. ¶ 19. To do this, Meta Pixel loads JavaScript code on websites and collects detailed data from interactions on the webpages. Id. ¶ 20. Meta Pixel tracks information from https headers and button clicks, and tracks at least seventeen standard events including payment info, registration for events, location search information, purchases, scheduling information, information that was searched for, applications, and what content users have viewed. Id. ¶ 24. The collected information is simultaneously delivered to Meta in “data packs” labeled with the user’s IP address. Id. ¶ 27. Meta then matches the information from the “data packs” with existing Facebook and Instagram profiles in a process called “advance matching.” Id. ¶ 28. Similarly, Meta also collects data on users without Facebook or Instagram profiles and stores it in so-called “shadow profiles.” Id. ¶ 29. Plaintiffs claim that, without their knowledge or consent, Defendant used Meta Pixel, as described above, to record and transmit their communications and interactions with www.sharp.com and automatically send that information to Meta. Id. ¶ 44. Plaintiffs maintain that the information transmitted by Defendant to Meta included: (1) the patient’s unique and persistent Facebook ID; (2) the fact that the patient clicked on a specific medical provider’s profile page; (3) the patient’s search parameters; and (4) the patient’s location filter. Id. ¶ 45. As a result, Plaintiffs allege that Defendant intentionally divulged its patients’ Personally Identifiable Information (“PII”) and Protected Health Information (“PHI”) to Meta. Id. ¶ 51. Plaintiffs contend that Defendant divulged this sensitive patient information without obtaining their express consent and therefore violated their reasonable expectation of privacy. Id. ¶¶ 78, 79. As a result, Plaintiffs bring the following five causes of action: (1) breach of fiduciary duty; (2) violation of common law invasion of privacy – intrusion upon seclusion; (3) invasion of privacy under the California Constitution, Art. I § 1; (4) violation of the California Confidentiality of Medical Information Act, California Civil Code § 56 et seq.; and (5) violation of the California Invasion of Privacy Act, California Penal Code § 630 et seq. A Rule 12(b)(6)2 motion tests the legal sufficiency of the claims made in a complaint. Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001). A pleading must contain “a short and plain statement of the claim showing that the pleader is entitled to relief . . . .” Fed. R. Civ. P. 8(a)(2). However, plaintiffs must also plead “enough facts to state a claim to relief that is plausible on its face.” Fed. R. Civ. P. 12(b)(6); Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). The plausibility standard demands more than “a formulaic recitation of the elements of a cause of action,” or “naked assertions devoid of further factual enhancement.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (internal quotation marks omitted). Instead, the complaint “must contain allegations of underlying facts sufficient to give fair notice and to enable the opposing party to defend itself effectively.” Starr v. Baca, 652 F.3d 1202, 1216 (9th Cir. 2011). In reviewing a motion to dismiss under Rule 12(b)(6), courts must assume the truth of all factual allegations and must construe them in the light most favorable to the nonmoving party. See Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336, 337–38 (9th Cir. 1996). The court need not take legal conclusions as true merely because they are cast in the form of factual allegations. See Roberts v. Corrothers, 812 F.2d 1173, 1177 (9th Cir. 1987). Similarly, “conclusory allegations of law and unwarranted inferences are not sufficient to defeat a motion to dismiss.” Pareto v. FDIC, 139 F.3d 696, 699 (9th Cir. 1998). In deciding whether to dismiss the complaint for failure to state a claim, the court 2 Unless otherwise noted, all “Rule”

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