St Jude Sues MedSec
A lawsuit was recently filed in which allegations of conspiracy, market manipulation, and false statements were made against MedSec and other companies and individuals.
Alleged Security Flaws Making Headlines
In August 2016, MedSec released shocking information to the media about the medical device making company, St. Jude. According to MedSec, a company that provides vulnerability research solutions, major security vulnerabilities were discovered in St Jude’s defibrillators and pacemaker. MedSec also claimed that these vulnerabilities could put patients’ lives in danger if exploited by hackers.
Turning a Quick Profit
Shortly after this news made the headlines, the MedSec team made their way to the investment research company, Muddy Waters, instead of confronting the manufacturer with the flaws. At Muddy Waters, MedSec made a tidy profit when they short-sold St. Jude stock. Of course the stock price drastically dropped after the damning claims were published.
It’s a Conspiracy
According to St. Jude, the claims are all fabricated by MedSec to manipulate the stock price. Mark Carlson, Chief Medical Officer and VP of St. Jude, said that St. Jude’s top priority is to reassure the doctors and patients who are using their life-saving devices that it is committed to the security and safety of the products. Carlson states that the company is taking legal action because of MedSec’s irresponsible activities.
What if Lives Were Really Endangered?
If the statements were indeed false, it is deplorable that a company can use libelous claims to turn a profit. But, whether it is true or not, this is a good example of how the incredible advancement in medical equipment is opening us up to cyber threats. What if the claims are true and the lives of patients using defibrillators and pacemakers were at stake? Cyber hazards should be taken into serious consideration when manufacturing medical equipment.