Labcorp settles class action alleging it sold data without consent

Labcorp class action settlement overview:

• Who: Labcorp has reached a settlement with internet users.
• Why: The settlement resolves claims that Labcorp sold users’ data without their consent to Meta/Facebook and other tech giants.
• Where: The Labcorp class action lawsuit was filed in North Carolina federal court.

Labcorp has agreed to settle a proposed class action lawsuit accusing the clinical testing company of unlawfully sharing patients’ and website users’ data with Meta and other technology companies.

The plaintiffs alleged Labcorp installed tracking software on its website that transmitted users’ personal and health-related information to third parties, including Meta Platforms Inc. and Google, without proper authorization. 

Several class actions filed claimed this data sharing occurred when users searched for lab tests, medical services or health-related information on Labcorp’s website.

Plaintiffs argued that users reasonably expected their interactions with Labcorp’s website to remain private and not be shared with advertising or analytics companies.

According to a notice filed with the court, the parties have reached an agreement to resolve all claims in the case. While the specific terms of the settlement have not yet been disclosed, the notice states that the parties intend to finalize and execute a formal settlement agreement within 40 days. 

Plaintiffs are expected to file a motion for preliminary approval of the settlement within 45 days of executing the agreement.

Labcorp settlement follows court’s decision allowing claims to proceed

In September 2024, a North Carolina federal judge denied Labcorp’s motion to dismiss the amended complaint, allowing the case to proceed. 

Although the court expressed concerns about the plaintiffs’ ability to establish class-wide claims, U.S. District Judge William L. Osteen Jr. ruled that the allegations were sufficient at that stage of the litigation.

The settlement comes after the court determined that the plaintiffs’ allegations warranted further litigation. The judge noted that while the pleadings raised questions about class certification, those issues would be addressed later in the case rather than at the dismissal stage.

The court filing states the parties will work in good faith to finalize settlement terms and present them for court approval in the coming weeks.

What do you think of the Labcorp settlement? Let us know in the comments.

The plaintiffs are represented by Douglas Ian Cuthbertson, Margaret Mattes Becko, Michael W. Sobol and Michael K. Sheen of Lieff Cabraser Heimann & Bernstein LLP, Brian Levin of Levin Law P.A., Matthew Ryan Wilson of Meyer Wilson Werning LPA and Daniel C. Lyon of Elliot Morgan Parsonage PLLC.

The Labcorp class action lawsuit is Howard, et al. v. Laboratory Corp of America, et al., Case No. 1:23-cv-00758, in the U.S. District Court for the Middle District of North Carolina.

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