The legal system in California is rapidly evolving with the rise of “trap and trace” lawsuits”— a type of litigation that has serious implications for businesses, consumers, and the attorneys representing them. Driven by the growing concern over online privacy violations, these lawsuits tap into the California Invasion of Privacy Act (CIPA) to challenge the use of tracking technologies like pixels, cookies, and website analytics tools.
For legal professionals — especially personal injury attorneys and firms representing individuals in consumer protection or privacy-related cases — understanding this trend is essential. More importantly, securing the financial support yoThat’sents need through legal funding can be a strategic move that allows these complex cases to reach fair resolution.
In this post, we’ll break down what trap and trace litigation involves, how it’s impacting personal injury law, and why lawsuit loans or pre-settlement funding play a critical role in supporting plaintiffs through long and resource-intensive legal battles.
What Is Trap and Trace Litigation?
Traditionally, the terms “pen register” and “trap and trace device” referred to physical tools used to log outgoing and incoming phone numbers — typically used in law enforcement operations. However, recent legal interpretations in California have extended these definitions to include digital tools like:
- Website tracking pixels (e.g., Meta, TikTok)
- Session replay scripts
- Cookies and analytics plugins
Under CIPA Sections 638.50 to 638.51, these tools may qualify as “devices or processes” that intercept dialing, routing, addressing, or signaling information (DRAS). If they collect this data without explicit user consent, plaintiffs’ attorneys argue that businesses may be violating privacy laws.
This shift opens the door to a wave of lawsuits targeting companies that use marketing or tracking software on their websites — often without realizing they may be infringing on CIPA protections.
Key Cases Fueling the Trend
Recent cases in California have paved the way for trap and trace litigation to take hold. A few notable examples include:
Greenley v. Kochava (2023)
The court allowed claims to move forward against a data analytics company accused of using software akin to a pen register. The decision expanded the definition of “device or process” to include app SDKs that collect and correlate user data.
Moody v. C2 Education (2024)
The plaintiff alleged that C2 used the TikTok pixel to collect user data without proper consent. Although C2 argued it had consented on behalf of users, the court allowed the case to proceed — suggesting that the user, not just the website operator, may be the party whose consent is required.
Shah v. Fandom, Inc. (2024)
The court found that tracking technologies could qualify as “processes” under CIPA, even if they are software-based, further blurring the line between traditional surveillance tools and modern marketing technology.
These cases highlight the expanding scope of what qualifies as surveillance in a digital context — and make clear that businesses of all sizes are potential targets.
What This Means for Injury and Privacy Lawyers
Although trap and trace lawsuits are privacy-based, the structure and burden of proof are similar to many personal injury cases. Plaintiffs must often provide technical evidence, show harm, and go up against corporate defendants with the resources to drag cases out.
That’s why this litigation trend is especially relevant for personal injury lawyers and legal teams already working with clients in high-stakes, long-term cases.
Many plaintiffs face financial strain as cases move slowly through the court system. If they’re unable to cover basic living expenses — rent, groceries, medical bills — they may feel pressure to accept a lowball settlement offer just to stay afloat.
This is where legal funding becomes not only beneficial but essential.
The Role of Legal Funding in Trap and Trace Cases
Legal funding, often referred to as pre-settlement funding or a lawsuit loan, is a non-recourse cash advance offered to plaintiffs based on the expected value of their case. In simple terms: if the plaintiff doesn’t win the case, they owe nothing back.
In trap and trace or privacy litigation, legal funding can:
Bridge the gap between filing and settlement
Privacy cases often require expert analysis, digital forensics, and prolonged discovery. Lawsuit funding provides plaintiffs with money to wait out this process.
Help plaintiffs reject unfair settlement offers
Defendants may offer low settlements early in the process, hoping plaintiffs can’t afford to continue litigation. Legal funding allows them to hold out for what they truly deserve.
Support daily living expenses
For plaintiffs unable to work, a lawsuit loan can cover essentials like rent, food, transportation, and utilities.
Allow attorneys to focus on strategy, not urgency
When clients are financially stable, attorneys can fully commit to building a strong case without being forced into hasty decisions due to client desperation.
Who Qualifies for Legal Funding?
Pre-settlement funding is available to plaintiffs with viable cases — often supported by attorneys who believe in their client’s chance of success. Eligibility depends on:
- The strength of the case
- The estimated settlement value
- The potential for damages under statutes like CIPA
No credit checks or employment verification are required. Approval is based solely on the merits of the lawsuit, making it a smart option for individuals who may not qualify for traditional loans.
Who is Fund Capital America?
Since 2006, Fund Capital America (FCA) has been a trusted leader in pre-settlement funding, providing cash advance loans to plaintiffs in personal injury and accident cases. Over the years, FCA has proudly served thousands of law firms and tens of thousands of clients, helping them navigate the financial challenges of litigation. While our core service is pre-settlement funding, we also offer a comprehensive range of services to support law firms and their clients from the beginning of the case to the final settlement check distribution.
Fund Capital America’s Services
In addition to pre-settlement funding, FCA provides a broad array of services designed to alleviate the financial and administrative burdens on injury victims, law firms, and medical professionals. Our services include:
- Pre Settlement Funding
- Policy Limits
- Doctor & Medical Facility Directory
- Doctor & Medical Facility Scheduling
- Language Services
- Investigation Services
- Medical Legal Finance
- Surgery Funding
- Medical Lien Funding
- Law Firm Funding & Law Firm Banking Services
- Law Firm Line of Credit
- Medical Receivables Financing
- Law Firm Services
Get the Legal Funding Support You Need in Just 5 Minutes!
Here’s how it works:
Fill out our application form: It takes just 5 minutes to provide the necessary details about your case.
Get prequalified: Our team will review your application and get back to you swiftly, often within hours.
Need assistance? Call us at the number provided for immediate support from our knowledgeable staff.
Don’t let financial stress prevent you from focusing on your recovery. Apply now to secure your lawsuit cash advance!
