After removing a lawsuit brought against it in Pennsylvania state court under the Wiretapping and Electronic Surveillance Control Act (“WESCA”) to the United States District Court for the Eastern District of Pennsylvania, Prime Hydration LLC argued in its motion to dismiss that the plaintiff lacked Article III standing.  Judge Nitza I. Quiñones Alejandro agreed and remanded the case to state court.  Heaven v. Prime Hydration LLC, 2025 WL 42964, at *7 (E.D. Pa. Jan. 7, 2025).

Plaintiff Shantay Heaven filed a putative class action in the Philadelphia Court of Common Pleas asserting that Prime Hydration allowed third parties to track the activity of visitors to Prime Hydration’s website.  Id. at *1.  Plaintiff asserted that Prime Hydration integrated the third-party pixels into its website.  Id. at *2.  Those two pieces of code, Plaintiff alleged, allowed Prime Hydration to capture “her searches for drink flavors, . . . and that this information was transmitted to” the third-party servers.  Id. at *6.

This case provides two important insights.  First, in holding that Plaintiff lacked Article III standing, Judge Quiñones Alejandro reasoned that “the information allegedly collected by the Defendant . . . is not the type of private information that, when disclosed, creates a harm sufficient to establish standing.”  Id. at *7.  Second, after concluding that Plaintiff lacked standing, Judge Quiñones Alejandro remanded the case to state court and denied Prime Hydration’s motion to dismiss as moot.

Lack of Article III Standing.  Judge Quiñones Alejandro held that Plaintiff’s alleged injury was not sufficiently concrete to confer standing.  The court relied principally upon Cook v. GameStop, Inc., 689 F. Supp. 3d 58 (W.D. Pa. 2023) and In re BPS Direct, LLC, 705 F. Supp. 3d 333 (E.D. Pa. 2023).  In Cook, Judge Quiñones Alejandro explained, “the plaintiff brought claims under the WESCA . . . premised on the defendant’s alleged tracking of her interactions, such as her mouse movements, clicks, keystrokes, and the URLs of the webpages she visited.”  Prime Hydration, 2025 WL 42964, at *5.  The Cook court held that the plaintiff lacked standing because the type of information tracked “was not the kind of information historically protected.”  Id. (citing Cook, 689 F. Supp. 3d at 65).  Similarly, in BPS Direct, the court held that website users who “‘did not disclose highly sensitive personal information such as medical diagnosis information or financial data from banks or credit cards cannot establish concrete harm.’”  Prime Hydration, 2025 WL 42964, at *5 (quoting BPS Direct, 705 F. Supp. 3d at 355).

Applying Cook and BPS Direct, Judge Quiñones Alejandro explained that “Plaintiff’s drink flavor searches more closely resemble a shopper entering a brick-and-mortar store and walking through the drink aisle—information that would not create a harm if disclosed.”  Prime Hydration, 2025 WL 42964, at *6.

Remand to State Court.  After deciding that Plaintiff lacked Article III standing, Judge Quiñones Alejandro decided that remand, rather than dismissal, was the appropriate remedy.  Judge Quiñones Alejandro cited first to 28 U.S.C. § 1447(c) (“If at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded.”).  Second, Judge Quiñones Alejandro cited to Collier v. SP Plus Corporation, where the Seventh Circuit rejected the argument that once a defendant removes an action, “the slate is wiped clean and the defendant can challenge jurisdiction.”  889 F.3d 894, 896 (7th Cir. 2018).  The Cook and BPS Direct decisions are pending on appeal in the Third Circuit, which may provide additional insight into the types of alleged privacy harms sufficient to confer standing.  See Cook v. Gamestop, Inc., 23-2574 (3d Cir. 2023); see also In re: BPS Direct LLC, et al, 23-3235 (3d Cir. 2023).

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Photo of Austin Riddick Austin Riddick

Austin Riddick is an associate in the firm’s Washington, DC office. He is a member of the Class Actions Practice Group where he represents clients in both state and federal courts. Austin represents companies in the technology, life science, consumer products, and financial…

Austin Riddick is an associate in the firm’s Washington, DC office. He is a member of the Class Actions Practice Group where he represents clients in both state and federal courts. Austin represents companies in the technology, life science, consumer products, and financial services industries. He has experience obtaining positive outcomes for clients through multiple phases of litigation, including drafting dispositive motions, discovery, preparing witnesses for interviews with opposing counsel, appeals, and settlement negotiations.

Austin also maintains an active pro bono practice focused on criminal justice and civil rights issues. He has led negotiations with the U.S. Attorney’s Office for the District of Columbia on behalf of a client with Brady claims that resulted in the client’s release from prison.

Photo of Kathryn Cahoy Kathryn Cahoy

Kate Cahoy co-chairs the firm’s Class Actions Litigation Practice Group and serves on the leadership committee for the firm’s Technology Industry Group. She defends clients in complex, high-stakes class action disputes and has achieved significant victories across various industries, including technology, entertainment, consumer…

Kate Cahoy co-chairs the firm’s Class Actions Litigation Practice Group and serves on the leadership committee for the firm’s Technology Industry Group. She defends clients in complex, high-stakes class action disputes and has achieved significant victories across various industries, including technology, entertainment, consumer products, and financial services. Kate has also played a key role in developing the firm’s mass arbitration defense practice. She regularly advises companies on the risks associated with mass arbitration and has a proven track record of successfully defending clients against these challenges.

Leveraging her success in class action litigation and arbitration, Kate helps clients develop strategic and innovative solutions to their most challenging legal issues. She has extensive experience litigating cases brought under California’s Section 17200 and other consumer protection, competition, and privacy laws, including the Sherman Act, California Consumer Privacy Act (CCPA), California Invasion of Privacy Act (CIPA), Wiretap Act, Stored Communications Act, Children’s Online Privacy Protection Act (COPPA), Video Privacy Protection Act (VPPA), along with common law and constitutional rights of privacy, among others.

Recent Successes:

Represented Meta (formerly Facebook) in a putative nationwide advertiser class action alleging violations under the California Unfair Competition Law (UCL) related to charges from allegedly “fake” accounts. Successfully narrowed claims at the pleadings stage, defeated class certification, opposed a Rule 23(f) petition, won summary judgment, and defended the victory on appeal to the Ninth Circuit. The Daily Journal selected Covington’s defense of Meta as one of its 2021 Top Verdicts, and Law.com recognized Kate as a Litigator of the Week Shoutout.
Defeated a landmark class action lawsuit against Microsoft and OpenAI contending that the defendants scraped data from the internet for training generative AI services and incorporated data from users’ prompts, allegedly in violation of CIPA, the Computer Fraud and Abuse Act (CFAA), and other privacy and consumer protection laws.

Kate regularly contributes to the firm’s blog, Inside Class Actions, and was recently featured in a Litigation Daily interview titled “Where Privacy Laws and Litigation Trends Collide.” In recognition of her achievements in privacy and antitrust class action litigation, the Daily Journal named her as one of their Top Antitrust Lawyers (2024), Top Cyber Lawyers (2022), and Top Women Lawyers in California (2023). Additionally, she received the Women of Influence award from the Silicon Valley Business Journal and was recognized by Daily Journal as a Top Attorney Under 40.