LabMD Vs. The FTC
One day in 2008, Michael Daugherty – CEO and owner of LabMD, a cancer detection lab – got a call from an executive of TiVera, a cybersecurity company. The caller said that a file containing private medical data of some 9000 of LabMD’s patients has been discovered online. When Michael refused to pay for TiVersa’s hefty “consultation fee”, it reported the incident to the FTC. This was the beginning of a ten-year-long legal battle that ultimately destroyed LabMD – but cost the Federal Agency dearly.