A team of Holland & Knight healthcare litigators based in San Francisco earned a significant victory for long-time client Palomar Health by securing a dismissal of a class action lawsuit involving its alleged misuse of online Meta Pixel tracking tools on its public-facing website and patient portal.
Palomar Health is a California Healthcare District that operates public hospitals in San Diego County. Healthcare districts like Palomar are a form of local government called “special districts,” which are independent from city and county governments and are governed by a board of directors elected by the public. As a public entity, Palomar Health is subject to California’s Government Claims Act, which requires plaintiffs to file a government claim with the public entity before filing a lawsuit seeking damages of any kind.
In late 2023, a class action lawsuit was filed against Palomar Health, alleging causes of action for invasion of privacy under California’s Constitution, intrusion upon seclusion, and violations of the California Invasion of Privacy Act and California Confidentiality of Medical Information Act, and seeking money damages, as well as injunctive relief, based on Palomar’s alleged misuse of Meta Pixel tracking software on its public-facing website and patient portal. Meta Pixel is a popular technology that institutions use to analyze and understand how users interact with their websites.
Relying on the Government Claims Act, the Holland & Knight team argued the plaintiff had failed to satisfy crucial pre-filing requirements before bringing a lawsuit against Palomar Health. The Holland & Knight team also successfully blocked the plaintiff’s requests for money damages on sovereign immunity grounds, based on Palomar Health’s status as a public entity.
The Superior Court in San Diego Court granted Palomar’s motion to dismiss, as well as Palomar’s motion to strike money damages, effectively ending the threat of the lawsuit.
The Holland & Knight team defending Palomar was led by Partner David Holtzman, who was assisted by Associates Ana Dragojevic and Isabella Granucci. Partners John Kern and Dan Kappes provided additional support.
“This is a major victory—and an early and decisive one for a case of this nature. David and the rest of the San Francisco team devised a successful argument based on their in-depth understanding of the Government Claims Act and Palomar’s unique standing as a provider,” said Mr. Kern.
“Given the heightened scrutiny of healthcare providers’ use of tracking technologies and recent uptick in lawsuits on these grounds, we knew we needed the right counsel, and Holland & Knight delivered,” said Palomar Health CEO Diane Hansen. “As a public entity, it was particularly important to us that we defeat the claims for money damages, as taxpayer dollars were at stake. We are thrilled with the ruling.”
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