Tiversa’s CEO responds to former employee’s testimony in FTC v. LabMD

Tiversa CEO Robert Boback has responded to the testimony of a former employee, Richard (“Rick”) Wallace at yesterday’s hearing in FTC v. LabMD. In a statement sent to this site, he writes:

What was probably lost on most people in the audience was that Wallace testified that HE downloaded the 1,718 file (the LabMD file in question) from LimeWire. This statement actually MAKES the case for the FTC. Daugherty has routinely suggested that Tiversa “stole” the file with our “government-funded super technology.” Wallace also testified that one cannot know what is in a file until it was downloaded. This is true and unfortunately for Daugherty, is in direct conflict with what he has suggested all along. Tiversa did not go digging for his company or his customer’s personal information. Wallace could not have actively targeted LabMD at my direction (as the allegation was made) because it was not known what the file contained or who the suspected owner was until after the download was complete. Wallace testified that he downloaded the file using LimeWire, free software that hundreds of millions of Internet users use.

Ironically, and as I said months ago, LabMD’s own witness was actually a fantastic witness for the FTC! No theft, no fancy software, no collusion with the FTC. It pretty much blows a gaping hole in Daugherty’s book. Daugherty admitted under oath that an employee at LabMD downloaded LimeWire to a company computer against company policy. The FTC case was to prove that LabMD did not adequately protect consumer data. It will be hard for LabMD to argue that an individual using a free software that hundreds of millions of Internet users have access to was able to access thousands of patient’s SSNs and personal information. This is the cornerstone of the case. This may be the very reason that no cross examination was necessary. Wallace had already provided the FTC with everything they needed.

As Tiversa was not represented in any way at the hearing, we look forward to having Mr. Wallace substantiate his baseless claims in our ongoing litigation against him, Daugherty and Cause of Action.

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