FTC Tackles ‘Intimidating’ Threat of Lawsuits Against Staff

By Alexei Alexis, Bloomberg BNA

The threat of personal liability claims against Federal Trade Commission staff, historically a rare concern, has suddenly become a real problem for the agency.

Two FTC attorneys, Alain Sheer and Ruth Yodaiken, face litigation connected to their work on a 2013 data security enforcement action against the now-defunct medical testing company LabMD Inc. Unlike similar suits filed against federal employees in the past, this one has survived a government motion to dismiss, which means the two defendants could find themselves personally liable for damages.

The FTC recently took action to rectify that problem, unveiling July ...