Allina Health System has agreed to pay $12.5 million to resolve litigation alleging that website tracking technologies disclosed personally identifiable information (PII) and protected health information (PHI) to third parties, while the health system continues to deny wrongdoing and liability.
Nonprofit health system, Allina Health System, based in Minneapolis, Minnesota reached a proposed settlement in litigation concerning its use of website tracking technologies, including pixels. The lawsuit alleged that those technologies disclosed PII and PHI to third parties, including Facebook (Meta) and Google, in violation of federal and state laws, including the HIPAA.
Website tracking technologies are used for marketing and advertising purposes and collect information about website activity. The collected information can be used to improve website services and support targeted advertising based on user interactions. Depending on how the technologies are configured, they can collect individually identifiable health information when deployed on healthcare provider websites. When installed on authenticated pages such as patient portals, the information collected may include data protected under the Health Insurance Portability and Accountability Act.
Litigation History
Plaintiff Jacqueline Ahlers filed the first lawsuit on September 16, 2024, in the U.S. District Court for the District of Minnesota. Two more plaintiffs were included in an amended complaint filed on February 12, 2025.
The consolidated case, Ahlers, et al. v. Allina Health System, asserted claims for invasion of privacy, breach of implied contract, unjust enrichment, breach of confidence, breach of fiduciary duty, negligence, and alleged violations of the Minnesota Health Records Act, the Electronic Communication Privacy Act, and the Minnesota Unfair and Deceptive Trade Practices Act.
Allina Health System denied wrongdoing and liability. Nevertheless, the health system agreed to resolve the litigation after considering the cost, disruption, burden, and risks linked to the ongoing case.
Settlement Terms
The proposed settlement establishes a settlement fund totaling $12,500,000.
The settlement creates two separate funds. Group 1 will receive $10,303,098, and Group 2 will receive $2,196,902.
Attorneys’ fees and litigation expenses, settlement administration and notification costs, and service awards for the class representatives will be deducted from each fund. The deductions will be allocated using an 82.42% share for Group 1 and a 17.58% share for Group 2. The remaining money in each fund will be distributed on a pro rata basis to eligible class members who submit valid claims.
Settlement Classes
The Group 1 settlement class includes individuals who used the patient portal, non-portal bill pay services, or non-portal scheduling services between September 16, 2018, and May 11, 2026.
The Group 2 settlement class includes individuals who were non-portal, non-bill pay, and non-scheduling patients during the period from September 16, 2018, through May 11, 2026.
Settlement Schedule
The deadline to opt out of the proposed settlement or submit an objection is August 10, 2026. Claims must be submitted by September 8, 2026. The final approval hearing is scheduled for September 24, 2026.
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