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Kirk Nahra Comments on LabMD’s Challenge to Reinstated FTC Data Security Case 

Healthcare Info Security
September 6, 2016

Kirk J. Nahra, chair of Wiley Rein’s Privacy Practice and co-chair of the Health Care Practice, was quoted in a Healthcare Info Security article about LabMD’s request for a stay, pending appeal, of the Federal Trade Commission’s (FTC) reinstatement of a long-running enforcement action. The FTC in July overturned a 2015 decision by its own administrative law judge to dismiss the agency’s data security case against the medical testing company. The FTC case stems from alleged data breaches that were discovered in 2008 and 2012.

Mr. Nahra said LabMD’s continuing battle with the FTC is testing new ground. “There’s very little precedent in this setting – a long-standing dispute pushed to the full margins of the enforcement process, with a company that is essentially out of business but still fighting hard,” he said.

A final order issued by the FTC on July 28 requires LabMD to safeguard confidential patient data that remains on its computer system, even though the company ceased operations in 2014, according to the article.

“I don’t think it is necessarily that hard to protect the data, since they don’t need to use it on any ongoing basis,” Mr. Nahra said. “Another big question is why they still have it at all. Companies always have to protect the data they have, regardless of whether they are out of business – although that obviously makes enforcement a bit more challenging.”

To read the full article, please click here.