The Federal Trade Commission’s data security trial against LabMD Inc. took an unexpected turn after lawyers revealed that the House Oversight Committee is investigating a key player, prompting the administrative law judge to put the proceedings on hold until June 12.
On Friday, lawyers disclosed in court that the congressional committee is looking into cybersecurity company Tiversa Holding Corp. A former Tiversa employee scheduled to testify before the FTC planned to plead the Fifth Amendment unless granted immunity, his lawyer told chief administrative law judge D. Michael Chappell. Tiversa’s chief executive officer said he needed time to learn more about the investigation before testifying, according to his lawyer. LabMD did not object.
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