LabMD Says Gov't Funded The Data Breach At Probe's Center

Law360, New York (November 15, 2013, 2:20 PM EST) -- Cancer diagnosis firm LabMD Inc. fired back Thursday against the Federal Trade Commission's "intrusive" probe of its alleged security breach, advancing a bold theory that the government had funded the breach and that the agency's enforcement push is merely retaliation for the CEO's outspoken criticism of the agency in recent years.

In a new complaint filed in District of Columbia federal court, the Atlanta-based firm railed against the FTC's investigation of a data breach that allegedly exposed a LabMD patient information file that included billing information, claiming it was the federal government that had paid cyberintelligence firm Tiversa Holding Corp. to...

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