Last week, the Third Circuit affirmed dismissal of a putative class action asserting that defendant Quest Diagnostics violated the California Invasion of Privacy Act (“CIPA”) and the Confidentiality of Medical Information Act (“CMIA”) by employing a website pixel to track and collect data about their website activity for advertising purposes.  See Cole v. Quest Diagnostics Inc., No. 25-1449, 2025 WL 3172640 (3d Cir. Nov. 13, 2025).  The Third Circuit held that Quest was not liable under CIPA for aiding and abetting wiretapping because no wiretapping had occurred, nor under CMIA because Plaintiffs had not alleged the disclosure of protected “medical information.”

Plaintiffs Angela Cole and Beatrice Roche asserted that Quest, a provider of diagnostic information services, aided and abetted a third-party pixel provider’s alleged interception of their medical information and communications with Quest’s websites.  The district court had dismissed Plaintiffs’ CMIA claim, without prejudice, on the ground that the information allegedly disclosed—reflecting only that a patient had “received and [was] accessing test results”—was not substantive “medical information” protected by CMIA, and, as we previously reported, dismissed Plaintiffs’ CIPA claim, with prejudice.

The Third Circuit affirmed dismissal of Plaintiffs’ CIPA and CMIA claims on the following grounds:

  • CIPA – The Party Exception AppliesApplying Third Circuit precedent in In re Google Inc. Cookie Placement Consumer Privacy Litigation, 806 F.3d 125 (3d Cir. 2015), the Court held the third-party pixel provider was a “party to the communication” because Plaintiffs’ browsers had “sen[t] a separate message” to the pixel provider’s servers “concurrent with the communications with [Quest].”  Accordingly, the pixel provider had directly received the communication from Plaintiffs’ browsers, and Quest did not aid or assist any interception or eavesdropping, even where Plaintiffs lacked knowledge of the asserted transmissions.

  • CMIA – Failure to Plead Disclosure of Medical Information.”  The Court further held that Plaintiffs failed to allege the disclosure of substantive “medical information” under CMIA.  Drawing on federal district court and California state court precedent, the Court explained that “medical information” must relate to “medical history, mental or physical condition, or treatment.” While the “nature of treatment” qualifies as “medical information,” the “fact that treatment occurred [does] not.” Here, the Court concluded, Plaintiffs’ allegation that Quest disclosed the website URL that a patient accessed to view test results amounted to, at most, an assertion that “Quest disclosed Plaintiffs had been [Quest’s] patients.”  This was not “medical information” protected under CMIA.
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Photo of Kathryn Cahoy Kathryn Cahoy

Kate Cahoy co-chairs the firm’s Class Action Litigation Practice Group and serves on the leadership committee for the firm’s Technology Industry Group. A highly skilled litigator, she defends clients in complex, high-stakes class action disputes, securing significant victories across various industries, including technology…

Kate Cahoy co-chairs the firm’s Class Action Litigation Practice Group and serves on the leadership committee for the firm’s Technology Industry Group. A highly skilled litigator, she defends clients in complex, high-stakes class action disputes, securing significant victories across various industries, including technology, entertainment, consumer products, and financial services. Kate also plays a key role in the firm’s mass arbitration defense practice. She regularly advises companies on the risks associated with mass arbitration and has a proven track record of successfully defending clients against these challenges.

Leveraging her success in class action litigation and arbitration, Kate helps clients develop strategic and innovative solutions to their most challenging legal issues. She has extensive experience litigating cases brought under California’s Section 17200 and other consumer protection, competition, and privacy laws, including the Sherman Act, California Consumer Privacy Act (CCPA), California Invasion of Privacy Act (CIPA), Wiretap Act, Stored Communications Act, Children’s Online Privacy Protection Act (COPPA), Video Privacy Protection Act (VPPA), along with common law and constitutional rights of privacy, among others.

Kate’s exceptional legal work has earned widespread recognition. The Daily Journal named her successful defense of Meta and Microsoft cases described below as among its Top Verdicts, recognizing some of the largest and most impactful verdicts in California.

Recent Successes:

Represented Meta (formerly Facebook) in a putative nationwide advertiser class action alleging violations under the California Unfair Competition Law (UCL) related to charges from allegedly “fake” accounts. Successfully narrowed claims at the pleadings stage, defeated class certification, opposed a Rule 23(f) petition, won summary judgment, and defended the victory on appeal to the Ninth Circuit. (Daily Journal, Top Verdicts of 2021. Law.com recognized Kate with a Litigator of the Week Shoutout.
Defeated a landmark class action lawsuit against Microsoft and OpenAI contending that the defendants scraped data from the internet for training generative AI services and incorporated data from users’ prompts, allegedly in violation of CIPA, the Computer Fraud and Abuse Act (CFAA), and other privacy and consumer protection laws. (Daily Journal, Top Verdicts of 2024.)

Kate regularly contributes to the firm’s blog, Inside Class Actions, and was recently featured in a Litigation Daily interview titled “Where Privacy Laws and Litigation Trends Collide.” In recognition of her achievements in privacy and antitrust class action litigation, the Daily Journal named her as one of their Top Antitrust Lawyers (2024), Top Cyber Lawyers (2022), and Top Women Lawyers in California (2023). Additionally, she received the Women of Influence award from the Silicon Valley Business Journal, was recognized by the Daily Journal as a Top Attorney Under 40, and also was named to Bloomberg Law’s They’ve Got Next: The 40 Under 40 list.

Photo of Libbie Canter Libbie Canter

Libbie Canter represents a wide variety of multinational companies on managing privacy, cyber security, and artificial intelligence risks, including helping clients with their most complex privacy challenges and the development of governance frameworks and processes to comply with U.S. and global privacy laws.

Libbie Canter represents a wide variety of multinational companies on managing privacy, cyber security, and artificial intelligence risks, including helping clients with their most complex privacy challenges and the development of governance frameworks and processes to comply with U.S. and global privacy laws. She routinely supports clients on their efforts to launch new products and services involving emerging technologies, and she has assisted dozens of clients with their efforts to prepare for and comply with federal and state laws, including the California Consumer Privacy Act, the Colorado AI Act, and other state laws. As part of her practice, she also regularly represents clients in strategic transactions involving personal data, cybersecurity, and artificial intelligence risk and represents clients in enforcement and litigation postures.

Libbie represents clients across industries, but she also has deep expertise in advising clients in highly-regulated sectors, including financial services and digital health companies. She counsels these companies — and their technology and advertising partners — on how to address legacy regulatory issues and the cutting edge issues that have emerged with industry innovations and data collaborations.

Chambers USA 2025 ranks Libbie in Band 3 Nationwide for both Privacy & Data Security: Privacy and Privacy & Data Security: Healthcare. Chambers USA notes, Libbie is “incredibly sharp and really thorough. She can do the nitty-gritty, in-the-weeds legal work incredibly well but she also can think of a bigger-picture business context and help to think through practical solutions.”

Photo of Matthew Verdin Matthew Verdin

Matthew Verdin focuses on defending clients in the technology and financial services sectors. He has a strong record of delivering wins on behalf of clients in class actions and complex litigation, particularly in privacy and consumer protection lawsuits. Matthew is particularly successful in…

Matthew Verdin focuses on defending clients in the technology and financial services sectors. He has a strong record of delivering wins on behalf of clients in class actions and complex litigation, particularly in privacy and consumer protection lawsuits. Matthew is particularly successful in securing dismissals at the pleadings stage. For example, he won dismissal at the pleadings stage of over a dozen wiretapping class actions involving the alleged use of website analytics tools to collect data about users’ website visits. He also advises companies on managing litigation risk under federal and state wiretapping laws.

Matthew is also dedicated to pro bono legal services. Recently, he helped a domestic violence survivor win a case in the California Court of Appeal. Matthew’s oral argument led to the court ordering renewal of his client’s restraining order just one day later.

Photo of Anna D. Kraus Anna D. Kraus

Anna Durand Kraus advises on issues relating to the complex array of laws governing the health care industry. Her background as Deputy General Counsel to the U.S. Department of Health and Human Services (“HHS”) gives her broad experience with, and valuable insight into…

Anna Durand Kraus advises on issues relating to the complex array of laws governing the health care industry. Her background as Deputy General Counsel to the U.S. Department of Health and Human Services (“HHS”) gives her broad experience with, and valuable insight into, the programs and issues within the purview of HHS, including Medicare, Medicaid, fraud and abuse, and HIPAA privacy and security. Anna is co-chair of the firm’s Health Care Industry practice group.

Anna regularly advises clients on Medicare reimbursement matters, particularly those arising under Part B and the Part D prescription drug benefit. She also has extensive experience with the Medicaid Drug Rebate program. She assists numerous pharmaceutical and device manufacturers, health care providers, pharmacy benefit managers, and other health care industry stakeholders to navigate the challenges and opportunities presented by the Affordable Care Act.

Anna is a trusted adviser on health information privacy, security and breach notification issues, including those arising under the Health Insurance Portability and Accountability Act (“HIPAA”) and the Health Information Technology for Economic and Clinical Health (“HITECH”) Act. Her background in this area dates back to the issuance of the original HIPAA privacy regulations.

Anna’s clients depend on her to guide them through compliance with the Anti-Kickback statute, the Stark regulations, and other laws preventing fraud and abuse in the health care industry. Her deep knowledge of these laws has made her an important component of the firm’s representation of pharmaceutical companies and health care organizations under federal investigation or facing allegations under the False Claims Act. In addition, clients contemplating acquisitions in the health care sector rely on her to guide due diligence efforts.

Photo of Rachel Bercovitz Rachel Bercovitz

Rachel Bercovitz is an associate in the firm’s Washington, DC office, where she is a member of the Litigation and Data Privacy and Cybersecurity groups. She maintains an active pro bono practice, with a particular focus on gun violence prevention.