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31 October 2025

Illinois Federal Court Allows Plaintiffs To Proceed In Data Breach Class Action Anonymously

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Duane Morris LLP

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On October 22, 2025, in Doe, et al. v. Veradigm Inc., No. 25-CV-10147, 2025 U.S. Dist. LEXIS 207942 (N.D. Ill. Oct. 22, 2025), Judge Mary M. Rowland of the U.S. District Court...
United States Illinois Litigation, Mediation & Arbitration
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Duane Morris Takeaways: On October 22, 2025, in Doe, et al. v. Veradigm Inc., No. 25-CV-10147, 2025 U.S. Dist. LEXIS 207942 (N.D. Ill. Oct. 22, 2025), Judge Mary M. Rowland of the U.S. District Court for the Northern District of Illinois granted plaintiffs' motion to proceed under a pseudonym in a class action alleging violations of the Electronic Communication Privacy Act and the California Invasion of Privacy Act, and negligence for improper disclosure of plaintiffs' protected health information ("PHI"). The Court held that the potential harm to the plaintiffs in revealing their identities exceeded the likely harm from concealment because revealing their identities would exacerbate the very harm plaintiffs sought to remedy.

The decision illustrates the delicate balancing that courts apply when deciding whether to allow plaintiffs to proceed anonymously, particularly when faced with allegations of improper disclosure of highly sensitive personal information including test results, doctor's notes, and medical treatment information. When plaintiffs' reasons for proceeding anonymously implicate the same reasons they brought the lawsuit, like in Veradigm, the scales are demonstrably tipped in favor of proceeding under a pseudonym.

Case Background

In August 2025, plaintiffs, proceeding under the pseudonyms "Jane Doe," "Janet Doe," and "John Doe," filed a class action lawsuit against Veradigm alleging improper disclosure of their PHI to Google via Google's online marketing systems. Id. at *1. Plaintiffs contended that the disclosure would make them particularly vulnerable if their true names were revealed, as the publication of their names together with improperly released PHI would make them a "prime target" for identity theft, fraud and financial loss, stigma, and similar threats. Id. at *2.

Plaintiffs' initial motion to proceed under a pseudonym was denied without prejudice for failing to address recent Seventh Circuit precedent, Doe v. Loyola Univ. Chicago, 100 F.4th 910 (7th Cir. 2024), and Doe v. Blue Cross & Blue Shield United of Wis., 112 F.3d 869, 872 (7th Cir. 1997). Id at *1. In Loyola, the expelled plaintiff sought to proceed anonymously where he was accused of engaging in non-consensual sexual activity with another student. 100 F.4th at 912. In Blue Cross, the plaintiff requested anonymity out of fear that the litigation might result in the disclosure of his psychiatric records. 112 F.3d at 872. The Seventh Circuit indicated that it was inappropriate to allow the plaintiffs to proceed under fictitious names. See id.; Loyola, 100 F.4th at 914.

In their renewed motion in the case at hand, plaintiffs argued that Loyola and Blue Cross could be distinguished because, rather than concealing embarrassing information flowing from their own conduct, plaintiffs seek to prevent additional intrusions into their own private affairs. Veradigm, 2025 U.S. Dist. LEXIS 207942at *2. Plaintiffs agreed to reveal their true identities to Veradigm pursuant to a protective order to allow Veradigm to investigate their claims. Id. at *4-5.

The Court's Opinion

The Court agreed that the sensitive information in Loyola and Blue Cross was "tangential" to the respective Title IX and ERISA claims, whereas in the case at bar "the injury litigated against is the same interest Plaintiffs seek to protect through pseudonyms: disclosure of Plaintiffs' PHI." Id. at *4. Furthermore, there could be no prejudice to Veradigm where the plaintiffs agreed to reveal their true identities under a protective order to allow Veradigm to investigate their claims. Id. at *4-5. Therefore, although the use of fictitious names is generally disfavored in federal court, the harm to plaintiffs in revealing their identities exceeded the likely harm from concealment, and the Court granted plaintiffs' motion to proceed under a pseudonym.

An analogous decision from the U.S. District Court for the Northern District of California, In Re Meta Pixel Healthcare Litig., No. 22-CV-03580, 2025 U.S. Dist. LEXIS 45310 (N.D. Cal. Mar. 12, 2025), guided the opinion. There, as in Veradigm, the court considered whether the plaintiffs should be permitted to proceed under pseudonyms where data privacy was at issue. Id. at *12. It held that they should, reasoning that requiring the plaintiffs to proceed publicly would "arguably cause a further and greater privacy intrusion" and disclosure may dissuade plaintiffs from bringing privacy cases. Id. The court in Veradigm adopted this reasoning when granting plaintiffs' motion for permission to proceed under a pseudonym. Veradigm, 2025 U.S. Dist. LEXIS 207942 at *4-5.

Implications for Companies

Veradigm illustrates that, where the privacy of an individual is at issue in a lawsuit, courts may be more inclined to permit plaintiffs to proceed anonymously to avoid intruding further on their privacy.

Individuals who know that they may be able to avoid disclosing their identities during litigation may feel emboldened to pursue a data privacy lawsuit that they may not have otherwise.

Therefore, companies should be aware of the risk of additional litigation as the result of plaintiffs being permitted to litigate under pseudonyms.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.

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