23 Nov What are they saying about Michael and LabMD’s win?
Here’s a selection of quotes from Michael and LabMD’s win against the FTC.
The Wall Street Journal: “The Federal Trade Commission’s Data-Security Enforcement Efforts Have Received A Setback—At The Hands Of The Commission’s Own In-House Judge. Administrative Law Judge D. Michael Chappell late Friday dismissed a long-running and sometimes bitter case involving LabMD, a former medical testing company the FTC accused of failing to provide reasonable or appropriate cybersecurity protections for patient data.”(Brent Kendall, “Federal Trade Commission Loses Data Security Ruling,” http://blogs.wsj.com/law/2015/11/16/federal-trade-commission-loses-data-security-ruling/tab/print/)
“In A Data Security Enforcement Action That Some Have Characterized As A Modern Version Of David Vs. Goliath, David Won Today, And The FTC Lost.It was an enforcement action that the FTC never should have commenced, as I’ve argued repeatedly, and today’s loss may actually make future enforcement actions more difficult for them as the standard for demonstrating likelihood of substantial injury has now been addressed in this ruling.”(Dissent, “FTC V. LabMD Ruling Issued: FTC Loses Data Security Enforcement Case,”Databreaches.Net, 11/13/15)
The Privacy Advisor: “The Case Currently Represents The First Time A Company Has Challenged An FTC Complaint Brought On The Grounds Of Unreasonable Information Security And Won.” (San Pfeifle, “FTC Complaint Against LabMD Dismissed,” The Privacy Advisor Blog, 11/16/15)
Data Security Blog: “The Federal Trade Commission Was Handed A Stunning Defeat Late Friday.” “In a long-running and highly contentious data security enforcement action against LabMD, a small medical testing laboratory, the Federal Trade Commission was handed a stunning defeat late Friday.”
Daugherty: “I Had No Choice But To Fight:” “I spoke with LabMD CEO Michael Daugherty over the weekend about the ruling and its implications. He told me that he fought the FTC because he was faced with “death by a consent decree or death by damage” and that the headline risk of a data security breach in the health care industry would have ‘terrified’ his clients and meant an end to his business. ‘I had no choice but to fight. LabMD is dead. I had nothing to lose.’”(Craig Newman, “FTC Blasted In LabMD Data Security Case,” Data Security Law Blog, 11/16/15)
“It’s a bittersweet but big victory for the legacy of LabMD, as the Administrative Law Judge smacked the FTC down but good, dismissing the FTC’s bully case for the smoke and mirrors revenge mission that it was,” he tells Information Security Media Group. “Relying on unreliable witnesses, not verifying evidence and punishing LabMD into insolvency, this win won’t bring back LabMD or wash the blood off the government’s hands, but hopefully will raise awareness of the true tactics of the FTC and all who enable their behavior.” (Marianne Kolbasuk McGee, “Judge Dismisses FTC Case Against LabMD,” Gov Info Security, 11/17/15)
Big Data Tech Law: “The Words ‘Speculation’ And ‘Speculative’ Appear Seventeen Times In The Decision, Usually In Judgments About The Quality Of The FTC’s Case And Of The Testimony Of Its Experts.” “The words “speculation” and “speculative” appear seventeen times in the decision, usually in judgments about the quality of the FTC’s case and of the testimony of its experts, and we might expect it to echo through many responses to FTC accusations and data breach disputes in the coming years.”(Jon Neiditz, “No Harm, Big Foul: Why Yesterday’s LabMD Decision Is Stunning And Important,” Big Data Tech Law Blog, 11/14/15)
Cause Of Action Noted That The FTC Wasted “Millions Of Taxpayer Dollars:” Cause of Action bashed the FTC for spending “millions of taxpayer dollars” to pursue its claims against the lab, which was forced to wind down operations during the course of the costly matter, and accused the commission of using the case to “intimidate” other businesses into quickly settling similar matters. “This ruling puts a return address on bureaucratic abuses of power, and proves that sometimes the good guys win,” Epstein said.” (Allison Grande, “FTC Loses LabMD Data Security Suit,” Law360, 11/16/15)
“It Was An Enforcement Action That The FTC Never Should Have Commenced.” “It was an enforcement action that the FTC never should have commenced, as I’ve argued repeatedly, and today’s loss may actually make future enforcement actions more difficult for them as the standard for demonstrating likelihood of substantial injury has now been addressed in this ruling.” (Dissent, “FTC V. LabMD Ruling Issued: FTC Loses Data Security Enforcement Case,” Databreaches.Net, 11/13/15)
Big Data Tech Law: “The Government’s Case Was Made Uniquely Vulnerable By Its Partial Reliance On The Fruit Of The Uniquely Poisoned Tree.” “Of course, the government’s case was made uniquely vulnerable by its partial reliance on the fruit of the uniquely poisoned tree of which all of you following the case should be well aware, and about which those of you who have not might want to read.” (Jon Neiditz, “No Harm, Big Foul: Why Yesterday’s LabMD Decision Is Stunning And Important,” Big Data Tech Law Blog, 11/14/15)
Big Data Tech Law: “Yesterday’s Decision Is Also Important In … Its Examination In Detail Of The Remarkably Weak Evidence Of Harm Put Forth By The Government And All Of Its Experts.” “Yesterday’s decision is also important to future FTC actions and to data breach litigation more generally in its examination in detail of the remarkably weak evidence of harm put forth by the government and all of its experts.” (Jon Neiditz, “No Harm, Big Foul: Why Yesterday’s LabMD Decision Is Stunning And Important,” Big Data Tech Law Blog, 11/14/15)