[{"innerBlocks":[],"name":"core\/freeform","postId":3805,"blockType":{"name":"core\/freeform","keywords":[],"attributes":{"content":{"type":"string","source":"raw"},"lock":{"type":"object"}},"providesContext":[],"usesContext":[],"selectors":[],"supports":{"className":false,"customClassName":false,"reusable":false},"styles":[],"variations":[],"apiVersion":3,"title":"Classic","description":"Use the classic WordPress editor.","category":"text"},"originalContent":"The U.S. Court of Appeals for the Eleventh Circuit has granted a stay in the Federal Trade Commission\u2019s data breach allegations against now-defunct medical testing laboratory LabMD.

The federal court\u2019s stay\u2014halting implementation of a July 29, 2016, FTC opinion and final order\u2014is the latest salvo in an ongoing legal battle that continues unabated.

In late July, the FTC reversed a decision by its chief administrative law judge that dismissed the agency\u2019s data security complaint against LabMD for the FTC\u2019s failure to prove that the company\u2019s data security practices caused or were likely to cause substantial consumer injury.

According to the FTC, LabMD \u201cfailed to implement reasonable security measures to protect sensitive consumer information on its computer network\u201d and \u201cits data security practices were unfair\u201d under the Federal Trade Commission Act\u2014charges that Michael J. Daugherty, founder and CEO of LabMD, refutes.

Also See<\/b>: FTC reverses judge\u2019s ruling in consumer data case<\/a>

When it issued its opinion\/final order in July, the FTC gave LabMD the opportunity to file a petition for review with a U.S. Court of Appeals. According to Daugherty, he filed an appeal on December 27 and expects the FTC will file their response to the court by end of this month. \u201cThen, we reply again within 10 days. And, then, oral argument in the spring\u201d will follow, he adds.

An FTC spokesman declined to comment on the court\u2019s stay. However, Daugherty says he is \u201cheartened that leaders from business, healthcare and technology are so supportive\u201d of his cause, referring to half a dozen amicus curiae<\/i> briefs filed with the court on behalf of his company.

Among the briefs filed with the court was one from the U.S. Chamber of Commerce and another from the Cause of Action Institute, a public interest law firm committed to limiting corruption and abuse in the federal government, that was filed on behalf of nine practicing and retired physicians.

\u201cThey understand how this case will impact their own compliance efforts,\u201d explains Daugherty. \u201cGiven how the FTC has tried everything to vilify LabMD, having our own physician clients eager to sign on and file their own brief was the cherry on top.\u201d

LabMD\u2019s business previously involved conducting diagnostic testing for cancer by using medical specimen samples, along with relevant patient information, to provide diagnoses to its physician customers. However, according to Daugherty, the company went out of business in January 2014 because of the \u201cdebilitating effects\u201d of the FTC\u2019s investigative practices and litigation.","saveContent":"The U.S. Court of Appeals for the Eleventh Circuit has granted a stay in the Federal Trade Commission\u2019s data breach allegations against now-defunct medical testing laboratory LabMD.

The federal court\u2019s stay\u2014halting implementation of a July 29, 2016, FTC opinion and final order\u2014is the latest salvo in an ongoing legal battle that continues unabated.

In late July, the FTC reversed a decision by its chief administrative law judge that dismissed the agency\u2019s data security complaint against LabMD for the FTC\u2019s failure to prove that the company\u2019s data security practices caused or were likely to cause substantial consumer injury.

According to the FTC, LabMD \u201cfailed to implement reasonable security measures to protect sensitive consumer information on its computer network\u201d and \u201cits data security practices were unfair\u201d under the Federal Trade Commission Act\u2014charges that Michael J. Daugherty, founder and CEO of LabMD, refutes.

Also See<\/b>: FTC reverses judge\u2019s ruling in consumer data case<\/a>

When it issued its opinion\/final order in July, the FTC gave LabMD the opportunity to file a petition for review with a U.S. Court of Appeals. According to Daugherty, he filed an appeal on December 27 and expects the FTC will file their response to the court by end of this month. \u201cThen, we reply again within 10 days. And, then, oral argument in the spring\u201d will follow, he adds.

An FTC spokesman declined to comment on the court\u2019s stay. However, Daugherty says he is \u201cheartened that leaders from business, healthcare and technology are so supportive\u201d of his cause, referring to half a dozen amicus curiae<\/i> briefs filed with the court on behalf of his company.

Among the briefs filed with the court was one from the U.S. Chamber of Commerce and another from the Cause of Action Institute, a public interest law firm committed to limiting corruption and abuse in the federal government, that was filed on behalf of nine practicing and retired physicians.

\u201cThey understand how this case will impact their own compliance efforts,\u201d explains Daugherty. \u201cGiven how the FTC has tried everything to vilify LabMD, having our own physician clients eager to sign on and file their own brief was the cherry on top.\u201d

LabMD\u2019s business previously involved conducting diagnostic testing for cancer by using medical specimen samples, along with relevant patient information, to provide diagnoses to its physician customers. However, according to Daugherty, the company went out of business in January 2014 because of the \u201cdebilitating effects\u201d of the FTC\u2019s investigative practices and litigation.","order":0,"get_parent":{},"attributes":[],"attributesType":{"content":{"type":"string","source":"raw"},"lock":{"type":"object"}},"dynamicContent":""}]

Court grants stay in FTC data security complaint against LabMD

More for you