Memorial Healthcare Services Agrees to Settle Website Tracking Litigation for $750,000

By Daniel Lopez

Memorial Healthcare Services has agreed to settle a class action lawsuit concerning the use of pixels and other tracking, web analytics, and advertising technologies on its website, subject to court approval, with a settlement fund of $750,000 for eligible class members.

Lawsuit Allegations

The lawsuit concerns the use of pixels and other tracking, web analytics, and advertising technologies on the Memorial Healthcare Services website. The complaint alleges that these technologies were placed on the HIPAA-covered entity’s website without the knowledge or consent of patients.

The allegations state that personally identifiable information (PII) and protected health information (PHI) of website users were collected and transferred to third parties. The complaint alleges that these disclosures violated patient rights and the California Invasion of Privacy Act.

Memorial Healthcare Services denies wrongdoing in connection with the allegations.

Case Information

The lawsuit is titled Valladolid v. Memorial Health Services. The action was filed in the Superior Court of California, County of Los Angeles, by plaintiff Michelle Valladolid on her own behalf and on behalf of other similarly situated individuals.

The parties considered the anticipated costs of continuing the litigation together with the risks associated with trial and related appeals before deciding to resolve the dispute through a settlement.

The parties participated in a day of mediation session on April 3, 2025. The mediation did not produce a settlement agreement during that session. Continued negotiations followed, and the parties later reached agreement on the material terms. Those terms have since been finalized.

The court has given preliminary approval of the settlement. A final fairness hearing is scheduled for September 17, 2026.

Settlement Class

The settlement class includes those who logged in the Memorial Health Services patient portal (www.memorialcare.org) from March 7, 2022 to July 8, 2022. Individuals who meet the settlement class definition may be eligible to participate in the settlement if they satisfy the applicable requirements.

Settlement Terms

The settlement establishes a fund of $750,000. Eligible class members may submit a claim for a one-time cash payment. Payments will be distributed on a pro rata basis from the settlement fund.

The settlement fund will be used as payment for the attorneys’ fees and expenses, the service award for the class representative, and the settlement administration and notification costs, will be paid from the settlement fund. The remaining settlement fund will be paid to class members who submitted valid claims.

Settlement Deadlines

Objection to the proposed settlement must be submitted by July 15, 2026. The deadline to request exclusion from the settlement is August 21, 2026. Claims for settlement benefits must be submitted by August 21, 2026.

For additional information about eligibility, claim submission, deadlines, and other settlement materials, refer to theMemorial Healthcare Services’ settlement website.

Image credit: Andrey Popov 1905275774 – AdobeStock

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Daniel Lopez

Daniel Lopez is the HIPAA trainer behind HIPAA Coach and the HIPAA subject matter expert for NetSec.news. Daniel has over 10 years experience as a HIPAA coach. Daniel provides his HIPAA expertise on several publications including Healthcare IT Journal and The HIPAA Guide. Daniel has studied Health Information Management before focusing his career on HIPAA compliance and protecting patient privacy. You can follow Daniel on Twitter / X https://twitter.com/DanielLHIPAA