17 Oct Cyber-Sleuth or Cyber-Thief? LabMD Case Continues to Expose the Good, the Bad, and the Downright Ugly in Cyber-Security Developments
LabMD and Michael Daughterty made the HIPAA, HITECH & HIT this week!
Elizabeth Litten, esq., of the firm Fox Rothschild, writes in her article dated Oct 15th, about the recent news regarding the FTC vs LabMD case. Read below about allegations that the LabMD file was never anywhere but the LabMD computer until Tiversa took it…and wasn’t after they took it either.
LabMD, Inc. CEO Michael J. Daugherty continues to doggedly defend LabMD against an action brought by the Federal Trade Commission (FTC) against LabMD based on Section 5 of the FTC Act. He now has an opportunity to prove himself the “good guy” following last week’s decision by Chief Administrative Law Judge D. Michael Chappell granting LabMD’s motion that Chappell formally request an order from the U.S. Attorney General to compel testimony from, and provide immunity to, a key witness expected to expose the dirty investigative tactics and tainted facts relied upon by the government in bringing the action against LabMD. The key witness is a former employee of Tiversa Holding Company, Inc. (“Tiversa”), the company that dredged up a patient data file, leading the FTC to claim LabMD had “unreasonable data security practices” that were “likely to result in unauthorized exposure of data” in violation of Section 5. So who’s the “bad guy” here?
The witness is expected to testify that, contrary to allegations that form the bedrock of the FTC’s action, Tiversa did not find LabMD’s patient data file on four separate internet addresses as the result of a LabMD employee’s unauthorized download of a peer-to-peer (“P2P”) music-sharing app on a company computer. Rather, using what Tiversa has referred to as its high-powered, patent-pending search engine technology, Tiversa found the patient data file only on a LabMD computer.
To quote the last sentence of the article:
“…this case is ugly and certainly does not create a high level of confidence in the cyber-security investigation and enforcement tactics utilized by the FTC.”
To read more of the article, click HERE