PITTSBURGH – A cyber security company, Tiversa Holding Corp., and its CEO Robert J. Boback successfully argued for summary judgment in a cancer detection center’s defamation case.
Magistrate Judge Maureen Kelly of the U.S. District Court for the Western District of Pennsylvania heard LabMD Inc.’s lawsuit that was filed after Boback published statements concerning a data hack LabMD suffered, accusing the center of leaking the information of 10,000 patients.
The defendants argued they should receive summary judgment because LabMD didn’t prove the statements caused it harm.
“Because there is not sufficient evidence to establish actual or presumed damages… summary judgment will be granted in favor of defendants,” Kelly wrote in her March 24 ruling.
LabMD failed to prove actual damages as it didn’t allege any harm that its business suffered at the time of Boback’s claims, especially because LabMD wasn’t in business at the time, which LabMD pointed out multiple times.
“LabMD cannot proffer evidence that others were deterred from conducting business with it, or that it lost profits as a result of [the statements], because LabMD previously ceased operations and it has not attempted to resume business,” Kelly said.
The plaintiff also couldn’t prove that it’s accumulated $600,000 in debt in an attempt to recover its name and reputation. Even if LabMD could prove that it was this far into debt, it would have to show that it was directly because of the defendants’ defamation. LabMD’s CEO and sole shareholder Michael J. Daugherty never claimed that the company incurred those losses.
LabMD also didn’t prove presumed damages.
“LabMD cannot satisfy its heightened burden to prove by clear and convincing evidence that Boback made [the statements] with actual malice,” Kelly wrote.
Considering each of these factors, the court granted the motion for summary judgment in favor of both of the defendants.
U.S. District Court for the Western District of Pennsylvania civil action number 15-92