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LabMD, Inc.v.Federal Trade Commission

CourtUnited States Court of Appeals for the Eleventh Circuit
Docket No.14-12144
DecidedJanuary 20, 2015
Reporter776 F.3d 1275; 2015 WL 233072
JudgesEleventh Circuit Judges Martin and Anderson; District Judge Denise Cote sitting by designation
Tags
CivilAdministrative LawGovernment LawCivil ProcedureFederal JurisdictionSubject Matter JurisdictionStatutory InterpretationFirst AmendmentFree Speech
Case Summary

LabMD challenged an ongoing Federal Trade Commission enforcement proceeding after the FTC investigated the availability of patient files on a peer-to-peer network and alleged that the company’s data-security practices violated § 5 of the FTC Act. LabMD sought review under the Administrative Procedure Act and asserted ultra vires, due-process, and First Amendment retaliation claims; the district court dismissed for lack of subject-matter jurisdiction. The Eleventh Circuit held that neither the FTC’s complaint nor its order denying LabMD’s dismissal motion was final agency action because the administrative process remained ongoing and had not determined rights or obligations or imposed direct legal consequences. The court also held that the constitutional and ultra vires claims, including the retaliation claim, were intertwined with the enforcement proceeding and could be reviewed after final agency action through the FTC Act’s appellate process. It affirmed dismissal without reaching the merits of LabMD’s challenges.

Opinion

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