Healthcare Providers Settle Privacy Lawsuits to Avoid Risks as Tracking Tech Faces Scrutiny

Pomona Valley Hospital Medical Center has agreed to a $600,000 settlement to resolve a class-action lawsuit alleging the unauthorized use of Facebook Pixel and similar tracking technologies on its public website, potentially violating California privacy laws, according to Claim Depot. The settlement, announced in late 2025, targets California residents who visited the hospital's website and logged into its patient portal between January 1, 2019, and December 31, 2022, as reported by Newsweek. The hospital denies any wrongdoing but settled to avoid the costs and risks of prolonged litigation.

The lawsuit, Warren v. Pomona Valley Hospital Medical Center, was filed in March 2023 in the Superior Court of Los Angeles County. Plaintiffs argued that the hospital's use of Facebook Pixel-a tool that tracks user behavior-constituted an illegal interception of communications under the California Invasion of Privacy Act (CIPA) and other statutes. The technology, deployed to analyze website traffic and target advertising, allegedly collected sensitive data from portal logins without explicit consent.

Under the terms of the settlement, eligible class members will receive pro rata payments from a fund covering administrative costs, attorneys' fees (up to $200,000), and a service award for the lead plaintiff (up to $3,500). Payments will be distributed automatically via paper check or electronic transfer, with no action required from recipients unless they opt out. The hospital will use its own records to identify participants.

Key deadlines include a December 9, 2025, cutoff for opting out or objecting to the settlement, followed by a final fairness hearing on January 26, 2026. If approved, payments will be distributed after resolving any appeals. The hospital emphasized in its privacy policy that it collects non-personal data like IP addresses and browser types for internal purposes, with sensitive information encrypted during transmission.

The case highlights growing legal scrutiny of third-party tracking tools in healthcare. A California federal judge recently urged state lawmakers to clarify how laws like CIPA apply to technologies such as Meta's Pixel, calling the current legal framework "a mess". Meanwhile, the hospital's settlement aligns with broader trends in data privacy litigation, where organizations increasingly resolve claims to avoid reputational and financial risks.