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Insurance company lying to WCB? - WORLD Law Direct Forums

This question is concerning Canadian law,
An employee was recently put off work by doctors and got denied short term benefits because the insurance company felt the employee had "clinical sign" or "current test results confirming" the current injury. They also stated that there is no medical information that can support any "physical restrictions or limitations" of performing the job.
The insurance company also stated that even though the decision on short term benefits would be shared with the employer, they would not share any confidential medical information with the employer.
Specialist feel this is severe work related injury, so there is also a WCB claim in the matter.
Now WCB is telling the employee work has documentation from the insurance company clearly stating that the employee does have injuries but they are from a previous incident 4 years ago.
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If the insurance provider has told the employee , no, they fell they have no injuries and have no medical proof of any sort of injury, can they legally turn around and tell WCB that , yes, the employee is injured but they think it is from previous???? Seems like the insurance provider must be lying to someone.
If they tell the employee that have not shared confidential medical information with the employer, how is it that the employer can know the confidential natures of the employees medical condition without the employee telling them?
Can the insurance company legally has shared this confidential information without the employees consent?Is the insurance company at fault for sharing confidential medical information with the employer?
Has the insurance company done anything illegal by either lying to the employee or WCB?

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Any information and help as to where to seek legal advice would be appreciated.

Source: http://www.worldlawdirect.com/forum/injury-workers-compensation/66776-insurance-company-lying-wcb.html

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