Daugherty believed signing a consent decree would give doctors the impression that LabMD had been lax in protecting patient data and kill his business.
Well duh. LabMD violated patient privacy after all:
The manager of the billing department had been using LimeWire file-sharing software to download music. Without knowing it, she’d left her documents folder, which contained the insurance report now in Tiversa’s possession, open for sharing with other users of the peer-to-peer network.