Like the Wyndam Hotel case, the FTC was going after LabMD for suboptimal data security practices that led to consumer harm. Despite winning the case, LabMD has been affected in a big way. The cost and distraction of the legal battle drove the company out of business.
“I call it bitter sweet. It’s like after a murder and the criminal is found guilty,” Daugherty said. “But the person is still dead. LabMD is still dead.”