Cousin v. Sharp Healthcare

District Court, S.D. California·Decided November 17, 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 IN PART AND 14 DENYING IN PART DEFENDANT’S Plaintiffs, MOTION TO DISMISS 15 v. 16 SHARP HEALTHCARE, [Doc. No. 28] 17 Defendant. 18 19 20 This action consists of three consolidated cases brought by Hannah Cousin, Linda 21 Camus, and Edward Barbat (“Plaintiffs”) against Defendant Sharp Healthcare 22 (“Defendant” or “Sharp”). See Case Nos. 22-cv-2040-MMA-DDL, 23-cv-33-MMA- 23 DDL, 23-cv-330-MMA-DDL. The Court previously granted Defendant’s motion to 24 dismiss the Consolidated Class Action Complaint, see Doc. No. 20, and on August 2, 25 2023, Plaintiffs filed a First Amended Consolidated Class Action Complaint, see Doc. 26 No. 23 (“First Amended Complaint” or “FAC”). On August 2, 2023, Defendant filed a 27 motion to dismiss. See Doc. No. 26. Plaintiffs have filed an opposition, to which 28 Defendant replied. See Doc. Nos. 32, 40. The Court found the matter suitable for 1 determination on the papers and without oral argument pursuant to Civil Local Rule 2 7.1.d.1. See Doc. No. 41. For the reasons set forth below, the Court GRANTS IN 3 PART and DENIES IN PART Defendant’s motion to dismiss. 4 I. BACKGROUND1 5 The background factual allegations as set forth in the initial Consolidated 6 Complaint remain largely unchanged in the First Amended Complaint, and so the Court 7 incorporates its prior Order by reference here. See Doc. No. 22.2 Defendant is a non- 8 profit corporation that operates multiple hospitals and medical groups, and offers a 9 healthcare plan, throughout San Diego, California. FAC ¶ 13. One such hospital 10 operated by Defendant is Sharp Memorial Hospital (“Sharp Memorial”). Id. Plaintiffs 11 are residents of California and Sharp patients, who used Defendant’s website, 12 www.sharp.com, to either search for health care providers, schedule medical 13 appointments, or conduct other health care related matters. Id. ¶¶ 10–12, 70–88. 14 Generally speaking, Plaintiffs allege that Defendant utilizes an online tracking tool, 15 Meta Pixel, on its website sharp.com and related “subpages” to surreptitiously collect 16 their, and other patients’, sensitive health information. See, e.g., id. ¶¶ 1–4, 45–48. The 17 website and subpages are defined as “unauthenticated” because they do not require a 18 patient or user to log in to access the websites. See id. ¶ 42. According to Plaintiffs, the 19 information is shared with Meta in “data packets” labelled with personally identifiable 20 information such as a user’s IP address, and that Meta in turn “processes this information, 21 analyzes it, and assimilates it in order to provide targeted advertisements to businesses 22 23 24 1 Reviewing Defendant’s motion to dismiss, the Court accepts as true all facts alleged in the 25 Consolidated Class Action Complaint and construes them in the light most favorable to the Plaintiffs. See Snyder & Assocs. Acquisitions LLC v. United States, 859 F.3d. 1152, 1157 (9th Cir. 2017). 26 2 Due to the sensitive nature of the health-related allegations, an unredacted version of the Court’s prior Order was docketed at Doc. No. 22. The Court also notes that Plaintiffs were permitted to file 27 unredacted versions of their FAC and opposition under seal. Doc. Nos. 25, 39. The Court’s citations to the FAC, Plaintiffs’ opposition, and the Court’s prior Order are to the redacted versions, as discussion of 28 1 such as Sharp.” Id. ¶¶ 26, 29. Plaintiffs contend they did not agree to have their 2 information collected and used this way. See, e.g., id. ¶ 3. 3 As a result, Plaintiffs bring the following five causes of action on behalf of a class 4 of Sharp’ website users in California: (1) violation of common law invasion of privacy – 5 intrusion upon seclusion; (2) invasion of privacy under the California Constitution, Art. I 6 § 1; (3) violation of the California Confidentiality of Medical Information Act, California 7 Civil Code § 56 et seq. (“CMIA”); and (4) violation of the California Invasion of Privacy 8 Act, California Penal Code § 630 et seq. (“CIPA”). 9 II. LEGAL STANDARD 10 A Rule 12(b)(6)3 motion tests the legal sufficiency of the claims made in a 11 complaint. Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001). A pleading must 12 contain “a short and plain statement of the claim showing that the pleader is entitled to 13 relief . . . .” Fed. R. Civ. P. 8(a)(2). However, plaintiffs must also plead “enough facts to 14 state a claim to relief that is plausible on its face.” Fed. R. Civ. P. 12(b)(6); Bell Atl. 15 Corp. v. Twombly, 550 U.S. 544, 570 (2007). The plausibility standard demands more 16 than “a formulaic recitation of the elements of a cause of action,” or “naked assertions 17 devoid of further factual enhancement.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) 18 (internal quotation marks omitted). Instead, the complaint “must contain allegations of 19 underlying facts sufficient to give fair notice and to enable the opposing party to defend 20 itself effectively.” Starr v. Baca, 652 F.3d 1202, 1216 (9th Cir. 2011). 21 In reviewing a motion to dismiss under Rule 12(b)(6), courts must assume the truth 22 of all factual allegations and must construe them in the light most favorable to the 23 nonmoving party. See Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336, 337–38 (9th Cir. 24 1996). The court need not take legal conclusions as true merely because they are cast in 25 26 27 3 Unless otherwise noted, all “Rule” references are to the Federal Rules of Civil Procedure. Additionally, all citations to electronically filed documents refer to the pagination assigned by the 28 1 the form of factual allegations. See Roberts v. Corrothers, 812 F.2d 1173, 1177 (9th Cir. 2 1987). Similarly, “conclusory allegations of law and unwarranted inferences are not 3 sufficient to defeat a motion to dismiss.” Pareto v. FDIC, 139 F.3d 696, 699 (9th Cir. 4 1998). In deciding whether to dismiss the complaint for failure to state a claim, the court 5 is generally bound by the facts and allegations contained within the four corners of the 6 complaint. Hydrick v. Hunter, 500 F.3d 978, 985 (9th Cir. 2007). 7 Where dismissal is appropriate, a court should grant leave to amend unless the 8 plaintiff could not possibly cure the defects in the pleading. See Knappenberger v. City 9 of Phoenix, 566 F.3d 936, 942 (9th Cir. 2009) (quoting Lopez v. Smith, 203 F.3d 1122, 10 1127 (9th Cir. 2000)). 11 III. DISCUSSION 12 As an initial matter, the Court previously addressed the issue of whether collecting 13 and sharing of mere browsing activity on a publicly facing website is actionable. See 14 Doc. No. 20 at 6.

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