A recent Washington federal court decision emphasizes two key federal Wiretap Act principles. First, the Act’s crime-tort exception only applies if there are plausible allegations that a party to the communication intercepted communications specifically to commit a separate wrongdoing. Second, the statute does not allow secondary liability for “procuring” an interception by a third party. Nichols v. PeaceHealth Networks on Demand LLC, 2026 WL 607763, at *3-4 (W.D. Wash. Mar. 4, 2026).

In Nichols, the plaintiff alleged that defendant PeaceHealth Networks’ website used third-party software to capture users’ interactions—like personal health information and medical appointment details—and sent this information to the third party for targeted advertising. The plaintiff argued that the alleged interceptions violated her privacy and PeaceHealth Networks’ obligations under the Health Insurance Portability and Accountability Act (“HIPAA”), and she sued under the Wiretap Act.

The court dismissed the complaint with leave to amend, holding that the plaintiff failed to plead an unlawful “interception” and reasoning that the defendant, as a direct party to the communication, cannot be liable for intercepting it. The plaintiff argued that the interception fell outside this general rule based on the crime-tort exception, whereby a party to the communication cannot escape liability if they have acquired the communication for the purpose of committing a tortious act that is “separate and secondary to the acquisition of the information.” Id. at *3. The court held that the crime-tort exception did not apply because the plaintiff did not plead any facts to support the conclusory statements that PeaceHealth Networks “intended to violate” HIPAA and “disclosed HIPAA-protected health information to unauthorized third parties.” Id. at *4.

The court also rejected the assertion that PeaceHealth Networks could be liable for “procuring” an interception by the third party because “the majority [of courts] have rejected the notion that a defendant may be held liable for ‘aiding and abetting’ or ‘procuring’ an interception.” Id.

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Photo of Kathryn Cahoy Kathryn Cahoy

Kate Cahoy co-chairs the firm’s Class Action Litigation Practice Group and serves on the leadership committee for the firm’s Technology Industry Group. A highly skilled litigator, she defends clients in complex, high-stakes class action disputes, securing significant victories across various industries, including technology…

Kate Cahoy co-chairs the firm’s Class Action Litigation Practice Group and serves on the leadership committee for the firm’s Technology Industry Group. A highly skilled litigator, she defends clients in complex, high-stakes class action disputes, securing significant victories across various industries, including technology, entertainment, consumer products, and financial services. Kate also plays a key role in 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.

Kate’s exceptional legal work has earned widespread recognition. The Daily Journal named her successful defense of Meta and Microsoft cases described below as among its Top Verdicts, recognizing some of the largest and most impactful verdicts in California.

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. (Daily Journal, Top Verdicts of 2021. Law.com recognized Kate with 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. (Daily Journal, Top Verdicts of 2024.)

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, was recognized by the Daily Journal as a Top Attorney Under 40, and also was named to Bloomberg Law’s They’ve Got Next: The 40 Under 40 list.

Photo of Thea McCullough Thea McCullough

Thea McCullough counsels national and multinational companies across industries as a member of the Data Privacy and Cybersecurity, Litigation, and Public Policy practice groups.

Thea advises clients on a broad range of privacy issues, such as privacy policies and data practices, responses to…

Thea McCullough counsels national and multinational companies across industries as a member of the Data Privacy and Cybersecurity, Litigation, and Public Policy practice groups.

Thea advises clients on a broad range of privacy issues, such as privacy policies and data practices, responses to regulatory inquiries, and compliance obligations under federal and state privacy regulations, including biometric privacy laws. She also represents clients before the Federal Trade Commission in privacy enforcement actions and in consumer protection litigation.

Thea draws on her past experience across all branches of government to inform her practice and to advise clients on public policy matters. Most recently, Thea served as a clerk for the U.S. District Court for the Eastern District of Texas. Prior to beginning her legal career, Thea served as the communications director for the White House National Space Council, where she spearheaded messaging campaigns for Presidential Space Policy Directives and the administration’s civil, commercial, and defense space policy initiatives, and previously as the communications director for the U.S. House Committee on Science, Space, and Technology, where she managed the communications team and developed messaging strategies for policy and legislation covering several issue areas, including cybersecurity, advanced technologies, space, energy, environment, and oversight. She also served as a national spokesperson for President Trump’s 2020 campaign.

Thea is admitted to the DC Bar under DC App. R. 46-A (Emergency Examination Waiver); Practice Supervised by DC Bar members.