Did LabMD, the now-defunct cancer testing company, expose sensitive patient information with shoddy data security practices as U.S. regulations have charged, or was the company victimized by a private forensics firm extorting it for business – raising the troubling question of whether the entire case against LabMD was built on a false premise.
That is a central question in Daugherty et al. v. Sheer et al., a case pending before the U.S. Court of Appeals for the D.C. Circuit. LabMD has asked the court to reconsider its decision that two Federal Trade Commission lawyers are immune from a lawsuit filed against them by LabMD, charging that its First Amendment rights were violated when the FTC lawyers engaged in a “deliberate and successful effort to cause the Commission to authorize an enforcement action” based on misrepresenting critical facts in the case. LabMD has charged that FTC lawyers Alain Sheer and Ruth Yodaiken recommended that the commission start an enforcement action that “was laced with lies.”