After recently announcing it was winding down its operations as a result of the FTC’s protracted investigation and complaint against it, LabMD voluntarily dismissed its lawsuit against the FTC last week. The chronology might suggest that the two events were related, but two people close to the case say that they are not related.
LabMD’s lawsuit, filed in November in the U.S. District Court in D.C., had challenged the FTC’s authority to enforce data security, arguing, in part, that HIPAA’s provisions meant that only HHS had the authority to enforce data security for covered entities. In December, LabMD filed a motion to stay and