Court Denies Motion to Dismiss Website Tracking Lawsuit
A federal court allowed claims regarding unauthorized data transmission to proceed in a class action lawsuit.
Updated on Oct. 27, 2026 in Cybersecurity
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A federal court has denied a motion to dismiss a class action lawsuit alleging that websites embedded tracking software to disclose sensitive user information to third parties. While the court dismissed a breach of fiduciary duty claim, it allowed the Electronic Communications Privacy Act and unjust enrichment claims to move forward.
Why it matters
The ruling highlights the legal risks corporations face when tracking software transmits personally identifiable information and protected health information without explicit user consent. By permitting these claims to proceed, the court has signaled a focus on the intentional transmission of HIPAA-protected data and the retention of benefits derived from that data.
The litigation centers on tracking software allegedly embedded in websites to capture and transmit protected health information and personally identifiable information. The court evaluated these claims using the crime-tort exception found within the Electronic Communications Privacy Act.
The details
Plaintiffs allege that defendants profited from the unauthorized disclosure of private data to third-party entities. Although the judge ruled that plaintiffs failed to sufficiently allege a cognizable injury for the fiduciary duty claim, the court determined that the allegations regarding intentional transmission of HIPAA-protected data were plausible.
Timeline
The federal court published the ruling on the motion to dismiss on October 26, 2026.
The Tech Race
The ruling underscores the evolving application of the Electronic Communications Privacy Act to modern digital infrastructure. It reflects a growing scrutiny of how tracking technologies navigate existing privacy laws when collecting and sharing user data between web entities.
This decision clarifies the legal stakes for companies that deploy tracking tools on their platforms to collect user information. It may influence how businesses disclose data sharing practices to avoid future liability under federal privacy regulations.
The takeaway
Users should remain aware of the tracking tools websites employ when requesting personal or health-related information. Regularly reviewing privacy settings and understanding data-sharing policies can help individuals better protect their sensitive information online.
Further reading
For more on the intersection of privacy laws and digital security, see our coverage of Cybersecurity.
Source note: This article includes information reported by Michigan Lawyers Weekly.
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