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Cybersecurity Team Secures Appellate Win for LabMD Against FTC

Practices: Privacy & Cybersecurity, Appellate & Supreme Court

At the urging of Ropes & Gray, the U.S. Court of Appeals for the Eleventh Circuit today vacated the Federal Trade Commission’s order against LabMD, which arose from the first ever FTC adjudication that a company’s data security practices are “unfair” under the FTC Act. The court ruled that the FTC’s order is unenforceable because, rather than enjoining a specific act or practice, it mandates a complete overhaul of LabMD’s data security program and says little about how this is to be accomplished, effectively charging a district court with managing the overhaul. The decision will have significant implications for data security regulatory enforcement and litigation. 

The Ropes & Gray team representing LabMD includes privacy & cybersecurity co-head Douglas Meal, partners Douglas Hallward-Driemeier and Michelle Visser, and counsel David Cohen, and also received critical support from healthcare partner Debbie Gersh.

The 11th Circuit’s opinion is available here.

Mr. Meal was named “Litigator of the Week” by The American Lawyer on June 8 for his team’s work on this matter.

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