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Kaiser Permanente to Pay Up to $47.5M in Web Tracker Lawsuit

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Class Action Litigation Alleges Web Trackers Shared Patient Data With Tech Firms

Marianne Kolbasuk McGee (HealthInfoSec) •
December 2, 2025    

Kaiser Permanente to Pay Up to $47.5M in Web Tracker Lawsuit
Kaiser Permanente has agreed to pay up to $47.5 million to settle consolidated class action litigation stemming from its use of tracking codes in its websites, patient portals and mobile apps.

Kaiser Permanente has agreed to pay up to $47.5 million to settle consolidated class action litigation stemming from its use of tracking codes in its websites, patient portals and mobile apps. Claimants alleged the trackers unlawfully shared patients’ information with third parties, including Google, Microsoft and X – formerly Twitter.

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California-based Kaiser Permanente is one of the largest U.S. not-for-profit health plans and healthcare providers, serving about 12.6 million members in eight states and Washington, D.C.

The organization’s insurance arm, Kaiser Foundation Health Plan, reported the incident in April 2024 to federal regulators as an unauthorized access/disclosure HIPAA breach affecting 13.4 million people (see: Kaiser Permanente Notifying 13.4 Million of Tracker Breach).

The Kaiser breach was the second largest-health data breach reported to the U.S. Department of Health and Human Services last year, behind the Change Healthcare ransomware attack, which affected the protected health information of nearly 193 million people.

The consolidated class action complaint against Kaiser alleged a long list of federal and state law violations and other claims against the health plan in its use of embedded tracking codes that shared plaintiff and class members’ sensitive information to third parties including Quantum Metric, Twitter, Adobe, Microsoft Bing and Google.

The lawsuits claimed negligence, breach of implied contract and violations of the federal Electronic Communications Privacy Act, the California Confidentiality of Medical Information Act, the Georgia Computer Systems Protection Act, the Maryland Wiretapping and Electronic Act and several other state laws.

Settlement Terms

Under the preliminary settlement, Kaiser denies any wrongdoing and liability.

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Kaiser has agreed to pay $46 million, an amount that “may be increased, but in no event will it exceed $47.5 million, depending on certain conditions of the confidential Supplemental Agreement,” court documents said.

Settlement class members include Kaiser members in California, Colorado, Georgia, Hawaii, Maryland, Oregon, Virginia, Washington and the District of Columbia who accessed the authenticated pages of certain Kaiser Permanente websites or mobile applications from November 2017 to May 2024.

Under the settlement, each eligible class member will receive an equal pro rata payment which will be calculated by dividing the net settlement fund by the total number of authorized claimants.

The net settlement fund is the amount of the settlement amount remaining after the deduction of court-ordered payments for yet-determined attorneys’ fees and costs; court-awarded service awards slated at about $5,000 per named plaintiff; and the settlement administrator’s expenses and fees, and any taxes.

Kaiser did not immediately respond to Information Security Media Group’s request for comment on the preliminary settlement in the web tracking class action litigation.

In its April 2024 breach notice to affected individuals, Kaiser said it removed online cookie and pixel technologies from its websites and mobile applications, and implemented additional measures with the guidance of experts to safeguard against recurrence of this type of incident.

Thorny HIPAA Issues

The Kaiser breach was one of many large HIPAA breaches reported to HHS in 2023 and 2024 by other healthcare sector organizations related to their previous use of tracking pixels. In those cases, lawsuits alleged that patient information was captured on patient portals and websites and transmitted to third parties including Meta and Google (see: Blue Shield Web Trackers Shared Member PHI with Google Ads).

During the Biden administration, both HHS’ Office for Civil Rights and the Federal Trade Commission scrutinized the use of web tracking tools in health-related websites and mobile apps (see: Feds Warn Hospitals, Telehealth Firms About Web Tracker Use).

The Biden administration FTC had issued several enforcement actions about telehealth companies, including GoodRx and BetterHelp, related to their use of web trackers.

During the second Trump administration, which began in January, the FTC has taken no further enforcement actions in web tracking cases.

HHS OCR released guidance materials in 2022 and 2024 that warn about potential HIPAA violations related to online trackers, but has yet to issue an enforcement action in any web tracking cases (see: Tracker Backtrack: Feds Revise HIPAA Guidance on Web Tools).

Last year, HHS OCR and the FTC sent letters to 130 hospitals and telehealth firms letters warning about their use of web trackers (see: Feds Publicly Name 130 Healthcare Firms Using Web Trackers).

Numerous civil class action lawsuits alleging privacy violations have been filed against healthcare sector organizations. In addition to Kaiser Permanente, several others have opted to settle including New York-based Mount Sinai Health System, which agreed in August to $5.3 million preliminary settlement of a proposed class action lawsuit. In that case, claimants alleged the hospital’s use of online tracking tools in its patient portal and website sent patient information to Facebook without their knowledge or consent for years (see: NY Health System Settles Web Tracker Privacy Claim for $5.3M).





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    Embracing the Journey: Continuous Learning and Certification for Ethical Hackers

    Becoming an ethical hacker requires diverse skills and knowledge. Understanding the types of hackers is crucial, as it provides insights into how they operate. Armed with this knowledge, ethical hackers delve into cutting-edge tools and techniques. They leverage their skills to identify vulnerabilities and devise countermeasures.

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    The Tools of Ethical Hacking

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    References:

    "Cybersecurity Market, By Component (Hardware, Solution, Service), By Security Type, By Solution, By Application (IT & Telecom, Retail, BFSI, Healthcare, Defense & Government, Manufacturing, Energy, Others), By Region Forecast to 2032". Www.Emergenresearch.Com, 2023, https://www.emergenresearch.com/industry-report/cyber-security-market. Accessed 25 May 2023.

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    Cyber Insurance: An Essential Safety Net

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    Coverage Tailored to Your Business

    One of the key advantages of cyber insurance is that it can be tailored to fit the specific needs and risk profile of your business. Different businesses have different cyber risks. For example, a healthcare provider may need coverage for patient data breaches, while a retail business might require protection against credit card fraud. Cyber insurance policies can be customized to provide the coverage your business needs most.

    The Rising Importance of Cyber Insurance

    Cyber insurance is growing in importance as businesses become more digital and data-driven. It's not just about whether your business will experience a cyber-attack, but when it will happen. Data privacy laws are becoming more stringent, which means businesses can face hefty fines for failing to adequately protect customer data. Cyber liability insurance can provide coverage for these regulatory fines.

    Cyber Insurance - An Investment Worth Making

    Investing in cyber insurance is like putting on a seatbelt while driving. It doesn't prevent an accident, but it can significantly mitigate the damage if one occurs. Cyber insurance is an essential part of a comprehensive risk management strategy, providing financial protection and peace of mind in a digital age fraught with cyber threats. Regardless of your business size or industry, having cyber insurance can help you navigate the aftermath of a cyber-attack by protecting your financial resources.

    PSL’s Easy Guide to Understanding Cybersecurity

    The world of cybersecurity can often feel like a maze of technobabble and obscure acronyms. Yet in an era where our lives increasingly depend on digital infrastructure, it's important to have a basic understanding of the terminology involved. Learning about cybersecurity can help you avoid common mistakes and limit the chance of becoming a victim of these crimes.

    Here is an overview of common cybersecurity terms.

    1) Cybersecurity

    Let's start with the basics. Cybersecurity is simply the defense against digital attacks that target computers, mobile devices, networks, and servers. These attacks are typically aimed at accessing, changing, or destroying sensitive information, extorting money from users, or interrupting normal business processes.

    2) Malware

    Malware is any malicious software that can damage or infiltrate computers without the user's consent.

    Here are the most well-known types of malware.

    Virus

    Like a biological virus, a computer virus attaches itself to a host (in this case, a file), and spreads when the file is shared, infecting other files and systems.

    Worm

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    Trojan

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    Ransomware

    This type of malware encrypts the user's files and demands payment to unlock them.

    Spyware

    Spyware is malware that's specifically designed to spy on user activity without their knowledge.

    3) Phishing

    Phishing is a common attack that tries to gain personal information by using deceptive emails and websites. The attacker, masquerading as a trustworthy entity, uses a variety of strategies to trick the victim into opening an instant message, email, or text message.

    4) Firewall

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    5) VPN (Virtual Private Network)

    A VPN masks your internet protocol (IP) address to make your online actions nearly untraceable. VPN services establish encrypted connections to provide much greater privacy while using the internet.

    6) Encryption

    Encryption converts data into a code to prevent unauthorized access. When data is encrypted, it appears as gibberish unless you have the decryption key to convert it back to its original form.

    7) Two-Factor Authentication (2FA)

    2FA is a common security process in which users must provide two different authentication factors to gain access to an account. For example, in addition to a password, you might also need to enter a code sent to your phone.

    8) Darknet/Dark Web

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    9) Data Breach

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    10) Botnet

    A botnet uses a group of private computers that are unknowingly infected with malicious software and are controlled as a group to perform various tasks. Many times botnets are created to send out spam emails or carry out Distributed Denial of Service (DDoS) attacks.

    Closing Thoughts

    Understanding cybersecurity is not just for the tech-savvy; it's for everyone. We are all potential targets for cyber threats, and comprehension of basic cybersecurity terminology can make a significant difference in safeguarding ourselves and our digital assets.

    Employing cybersecurity measures also helps to keep your digital data safe. This might include using a VPN, enabling two-factor authentication, or simply being wary of suspicious emails to prevent phishing attacks.

    Ultimately, it's not necessary for everyone to be a cybersecurity expert, but a basic understanding of the key terms can be an empowering first step in better securing your digital life. This newfound knowledge can provide you the confidence to navigate the online world with more safety and assurance.