Cousin v. Sharp Healthcare

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

Opinion

1 2 3 4 5 6 7 8 9 UNITED STATES DISTRICT COURT 10 SOUTHERN DISTRICT OF CALIFORNIA 11 12 HANNAH COUSIN, et al., individually Case No.: 22-cv-2040-MMA (DDL) and on behalf of all others similarly 13 situated, ORDER GRANTING DEFENDANT’S 14 MOTION TO DISMISS Plaintiffs,

15 v. [Doc. No. 15] 16 SHARP HEALTHCARE, 17 Defendant. 18 19 20 This action consists of three consolidated cases brought by Hannah Cousin, Linda 21 Camus, Deanna Franklin-Pittman, and Edward Barbat (“Plaintiffs”) against Defendant 22 Sharp Healthcare (“Defendant” or “Sharp”). See Case Nos. 22-cv-2040-MMA (DDL), 23 23-cv-33-MMA (DDL), 23-cv-330-MMA (DDL). On March 3, 2022, Plaintiffs filed a 24 Consolidated Class Action Complaint alleging that Defendant intentionally disclosed its 25 patients’ sensitive health information, without their consent, to Meta Platforms, Inc. 26 (“Meta”) through the procurement and embedding of an internet tracking tool, Meta 27 Pixel, on its website. Doc. No. 14 (“CAC”). On April 4, 2022, the Defendant filed a 28 motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6). Doc. No. 15. 1 Plaintiffs filed an opposition, to which Defendant replied. See Doc. Nos. 17, 18. The 2 Court found the matter suitable for determination on the papers and without oral 3 argument pursuant to Civil Local Rule 7.1.d.1. See Doc. No. 19. For the reasons set 4 forth below, the Court GRANTS Defendant’s motion to dismiss. 5 I. BACKGROUND1 6 Defendant is a non-profit corporation that operates multiple hospitals and medical 7 groups, and offers a healthcare plan, throughout San Diego, California. CAC ¶ 14. One 8 such hospital operated by Defendant is Sharp Memorial Hospital (“Sharp Memorial”). 9 Id. Plaintiffs are residents of California and Sharp patients, who used Defendant’s 10 website, www.sharp.com, to either search for health care providers, schedule medical 11 appointments, or conduct other health care related matters. Id. ¶¶ 10–13, 64. 12 On June 16, 2022, “The Markup” published an article identifying Sharp Memorial 13 as one of thirty-three hospitals across the nation that had installed and used Meta Pixel on 14 its website. Id. ¶¶ 2, 32. The publication reported that Meta Pixel had collected patients’ 15 sensitive health and personal information from Defendant’s appointment scheduling page 16 and shared it with Meta. Id. ¶ 3. The sensitive information included, among other things, 17 a patient’s medical condition, prescriptions, diagnoses, and test results. Id. ¶ 6. “The 18 Markup” further stated that information sent to Meta included details about patient’s 19 medical conditions, prescriptions, doctor’s appointments, and when paired with a 20 patient’s IP address, could be used in combination with other data to identify a specific 21 individual or household. Id. ¶ 30. 22 Plaintiffs claim that Defendant failed to properly secure and safeguard their 23 sensitive health information submitted on its website by installing and using Meta Pixel. 24 Id. ¶¶ 1, 3. Plaintiffs assert that they were previously unaware of Defendant’s use of 25 26 27 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. 28 1 Meta Pixel, and that their information was being shared in such a way, until after the 2 release of this article. Id. ¶ 106. 3 Plaintiffs allege that Meta Pixel collected their sensitive information through the 4 following process. Id. ¶¶ 19–29. Meta created Meta Pixel to improve their targeted 5 advertising capability. Id. ¶ 19. To do this, Meta Pixel loads JavaScript code on websites 6 and collects detailed data from interactions on the webpages. Id. ¶ 20. Meta Pixel tracks 7 information from https headers and button clicks, and tracks at least seventeen standard 8 events including payment info, registration for events, location search information, 9 purchases, scheduling information, information that was searched for, applications, and 10 what content users have viewed. Id. ¶ 24. The collected information is simultaneously 11 delivered to Meta in “data packs” labeled with the user’s IP address. Id. ¶ 27. Meta then 12 matches the information from the “data packs” with existing Facebook and Instagram 13 profiles in a process called “advance matching.” Id. ¶ 28. Similarly, Meta also collects 14 data on users without Facebook or Instagram profiles and stores it in so-called “shadow 15 profiles.” Id. ¶ 29. Plaintiffs claim that, without their knowledge or consent, Defendant 16 used Meta Pixel, as described above, to record and transmit their communications and 17 interactions with www.sharp.com and automatically send that information to Meta. Id. 18 ¶ 44. 19 Plaintiffs maintain that the information transmitted by Defendant to Meta included: 20 (1) the patient’s unique and persistent Facebook ID; (2) the fact that the patient clicked 21 on a specific medical provider’s profile page; (3) the patient’s search parameters; and 22 (4) the patient’s location filter. Id. ¶ 45. As a result, Plaintiffs allege that Defendant 23 intentionally divulged its patients’ Personally Identifiable Information (“PII”) and 24 Protected Health Information (“PHI”) to Meta. Id. ¶ 51. Plaintiffs contend that 25 Defendant divulged this sensitive patient information without obtaining their express 26 consent and therefore violated their reasonable expectation of privacy. Id. ¶¶ 78, 79. 27 As a result, Plaintiffs bring the following five causes of action: (1) breach of 28 fiduciary duty; (2) violation of common law invasion of privacy – intrusion upon 1 seclusion; (3) invasion of privacy under the California Constitution, Art. I § 1; 2 (4) violation of the California Confidentiality of Medical Information Act, California 3 Civil Code § 56 et seq.; and (5) violation of the California Invasion of Privacy Act, 4 California Penal Code § 630 et seq. 5 II. LEGAL STANDARD 6 A Rule 12(b)(6)2 motion tests the legal sufficiency of the claims made in a 7 complaint. Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001). A pleading must 8 contain “a short and plain statement of the claim showing that the pleader is entitled to 9 relief . . . .” Fed. R. Civ. P. 8(a)(2). However, plaintiffs must also plead “enough facts to 10 state a claim to relief that is plausible on its face.” Fed. R. Civ. P. 12(b)(6); Bell Atl. 11 Corp. v. Twombly, 550 U.S. 544, 570 (2007). The plausibility standard demands more 12 than “a formulaic recitation of the elements of a cause of action,” or “naked assertions 13 devoid of further factual enhancement.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) 14 (internal quotation marks omitted). Instead, the complaint “must contain allegations of 15 underlying facts sufficient to give fair notice and to enable the opposing party to defend 16 itself effectively.” Starr v. Baca, 652 F.3d 1202, 1216 (9th Cir. 2011). 17 In reviewing a motion to dismiss under Rule 12(b)(6), courts must assume the truth 18 of all factual allegations and must construe them in the light most favorable to the 19 nonmoving party. See Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336, 337–38 (9th Cir. 20 1996). The court need not take legal conclusions as true merely because they are cast in 21 the form of factual allegations. See Roberts v. Corrothers, 812 F.2d 1173, 1177 (9th Cir. 22 1987).

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