From: Wall Street Journal
A firm battling the Federal Trade Commission’s authority to regulate its corporate cybersecurity said it has stopped most of its operations because of costs tied to the agency’s case.
Medical testing laboratory LabMD Inc. stopped collecting new specimens earlier this month, according to a letter to customers filed in federal court as part of its dispute with the agency. The firm is also now “closed for phone calls and Internet access” though reports and billing are still available, the letter said.
“This action is in large part due to the conduct of the Federal Trade Commission,” President and Chief Executive Michael J. Daugherty wrote in the letter. “The FTC has subjected LabMD to years of debilitating investigation and litigation regarding an alleged patient-information data-security vulnerability.”
The privately held Atlanta firm has shrunk to three employees including Mr. Daugherty from a peak of about 40 in recent years, he said in an interview. It does not plan to file for bankruptcy, he said.
Leave a Reply