LabMD Loses Appeal in Data Security Liability Case
The U.S. Court of Appeals for the 11th Circuit Thursday affirmed a lower court denying LabMD’s motion to dismiss an FTC decision that the cancer testing lab is liable for unfair data security practices. The lower court didn't abuse its…
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discretion in limiting the scope of discovery in the case, the ruling said. Commissioners last year voted 3-0 to find the company liable for unfair data security practices (see 1603080005), after an in-house administrative law judge dismissed the case against the company. It contended that cybersecurity firm Tiversa did the digital equivalent of breaking and entering by finding the data breach, downloading stolen patient information, and trying to get the firm's business.