A revised $32 million settlement has received first approval from the court to resolve class action data breach litigation against GoodRx and Criteo related to the use of website tracking tools on the GoodRx website that disclosed user information to third parties without consent. GoodRx is a Santa Monica, California-based telehealth company that operates a free-to-use platform that tracks prescription drug prices and offers coupons providing discounts on medications.
Criteo is a Paris, France-based digital advertising company that offers AI-driven performance marketing and retargeting solutions. Both companies agreed to settle a consolidated class action complaint alleging unfair business practices and improper sharing of consumer data with digital advertising and analytics companies between 2017 and 2020. The litigation also named other companies as defendants, which are not included in the settlement agreement.
The litigation stems from a Federal Trade Commission (FTC) complaint alleging GoodRx unlawfully disclosed the personal and health information of its users in violation of the FTC Act and the FTC’s Health Breach Notification Rule. GoodRx disagreed with the FTC’s allegations; however, the FTC complaint was resolved with a $1. 5 million settlement .
On February 2, 2023, the first putative class action lawsuit was filed, followed by other class action complaints against defendants GoodRx, Criteo, Meta and Google. The lawsuits were consolidated into a single complaint – Doe et al. v.
GoodRx Holdings, Inc. , et al. – which is pending in the United States District Court for the Northern District of California, Oakland Division.
The consolidated lawsuit asserted claims for negligence, negligence per se , intrusion upon seclusion, unjust enrichment, and violations of the California Confidentiality of Medical Information Act, California Invasion of Privacy Act, California Consumers Legal Remedies Act, California Unfair Competition Law, New York’s General Business Law, and Illinois Consumer Fraud and Deceptive Business Practices Act.
Get The FREE HIPAA Compliance Checklist Immediate Delivery of Checklist Link To Your Email Address Please enable JavaScript in your browser to complete this form. Business Email * Name * First Last Number * Company Name * Get Free Checklist Please Enter Correct Email Address Your Privacy Respected HIPAA Journal Privacy Policy The plaintiffs believe their claims are valid, and the defendants deny the claims in the lawsuit and maintain no laws were violated.
After two mediation conferences and subsequent discussions, a settlement was agreed upon that was acceptable to all parties to avoid the cost, distraction, and risks associated with a trial and related appeals. The proposed $25 million settlement was agreed by the plaintiffs and the defendants; however, the settlement was rejected by District Court Judge Araceli Martinez-Olguin, as the parties failed to meet the legal standards for demonstrating that the settlement was fair to consumers.
In response, GoodRx and Criteo agreed to increase the settlement fund by $7 million and formally added Criteo to the settlement agreement. The claims against the other defendants, Meta and Google, are continuing separately. The renegotiated settlement agreement has received preliminary approval from the court.
Under the terms of the settlement, GoodRx and Criteo will establish a $32,000,000 settlement fund from which attorneys’ fees and expenses, notification and settlement administration costs, settlement fund account costs, and service awards for the class representatives will be deducted. The remainder of the settlement fund will be paid pro rata to individuals who submit a valid claim.
The settlement agreement includes a clause that allows the defendants to cancel the settlement if the number of individuals excluding themselves exceeds an agreed-upon number. Class members wishing to object to the settlement or opt out must do so by December 29, 2026. Claims must be submitted by the same date, and the final fairness hearing has been scheduled for February 11, 2027.
December 4, 2024: GoodRx Agrees to $25 Million Settlement to Resolve Tracking Technology Lawsuit GoodRx, a telemedicine platform provider and drug discounter, has agreed to settle a consolidated class action lawsuit for $25 million. The lawsuit was filed in response to its use of website tracking technologies that disclosed website visitor data to third parties such as Meta Platforms, Google, and Criteo for advertising purposes without user consent.
The tracking technologies, also known as pixels, are code snippets that are added to websites to track user interactions. The information gathered on visitors can be used to improve websites and is also transferred to third parties for advertising purposes. The Federal Trade Commission (FTC) investigated GoodRx over the use of tracking tools and determined the FTC Act had been violated.
GoodRx had provided repeated assurances to its users that their sensitive data would not be shared with third parties, when the tracking tools on its website shared identifying information, including sensitive health information, with third parties without users’ knowledge or consent. The FTC also alleged a violation of its Health Breach Notification Rule as GoodRx failed to notify users about the data sharing.
GoodRx disagreed with the FTC’s findings , claiming the issue had been addressed almost 3 years before the FTC started investigating and maintains there was no wrongdoing. GoodRx maintains tools were used for advertising purposes in a manner it believed was compliant with all regulations. GoodRx chose to settle the alleged violations with the FTC for $1.
5 million rather than fight them in court. The settlement agreement also requires GoodRx to refrain from sharing users’ health information with third parties for advertising purposes and to obtain consent before sharing data for non-advertising purposes.
Originally published at hipaajournal.com
