As he claimed the NHS was "most probably" behind the baby deaths at her hospital.
Representatives in the House of Commons formally discussed, for the first time, the issues surrounding this matter.
The major operation was initiated by Sir David after he spent eight months examining the case in depth.
He has a long track record of campaigning for civil liberties and miscarriage of justice cases, including supporting those affected by the Post Office scandal and pushing for greater legal protection for whistleblowers.
Letby, a neonatal nurse, was given a life sentence of 15 years for the murders of seven babies and the attempted murders of another seven at The Countess of Chester hospital in 2015 and 2016.
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Sir David spoke at an adjournment debate in the House of Commons, saying he at first believed Letby was "an evil monster" until he met with experts, including previous presidents of the Royal Statistical Society and the Royal College of Paediatrics and Child Health (RCPCH).
"There was no hard evidence against her, nobody witnessed anything suspicious,” he told MPs.
There is substantial evidence suggesting that there are far more plausible explanations for these tragic fatalities than those provided by the prosecution.
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“Quite simply, it is an outrageous miscarriage of justice by a legal system that failed to address unmistakably complex statistical and scientific medical evidence.”
MPs were informed that there was limited evidence against Letby, aside from her presence at several incidents and a "gut feeling" from the consultants, some of whom were implicated in the deaths of the babies in question.
However, its report was never presented to the jury.
Sir David also noted there had been a deadly outbreak of Pseudomonas bacteria in the baby unit at the time of the deaths - as The Telegraph had previously pointed out - but once more this was not shared with the jury.
"It's challenging to discount the possibility that this might be a contributing factor to the death or collapse of some of these babies," he said.
Commenting on Sir David's comments, Jesse Norman, the MP for Hereford, the place where Letby's parents reside and Letby herself originates from, stated: "What he said is deeply troubling and distressing at so many different levels."
‘Jury has made determination’
The Justice Minister, Alex Davies-Jones, responded by saying "It would be inappropriate for her to comment on Letby's case specifically."
She went on to say: “The jury have carefully considered all of the evidence that was presented to them and they have reached a decision.”
“Over several days, the Court of Appeal listened to legal arguments. Like anyone else who has been convicted and claims not to have done it, Miss Letby can indeed apply to the Criminal Cases Review Commission.”
She also wanted to express her acknowledgement of the impact on each of the families involved in the case.
The parents have been waiting a long time for answers, and it's crucial we ensure that whatever is said next, we commit to providing closure for those families.
Members of Parliament were informed that the Crown Prosecution Service (CPS) might have also breached the guidelines for crown prosecutors after providing guidance to the police that a thorough statistical assessment into the relevance of Letby's presence at the deaths should not be pursued.
Professor Jane Hutton, a medical statistics expert at Warwick University, was initially approached by Chester Police, who informed her that their approach was incorrect. However, she was subsequently dismissed as an expert by the Crown Prosecution Service instructions.
Sir David said that decision "matters a great deal" as one of the "most significant" pieces of evidence in the case was a shift chart that appeared to show Letby as the only nurse on duty for all alleged murders and injuries.
Professor Hutton stated the prosecution's case was even more seriously flawed than that of Sally Clark, a mother who was wrongly convicted of murdering her two children, who was later found innocent.
Sir David also highlighted new evidence from renowned neonatologists who have discovered alternative reasons for the deaths of two of the babies.
Investigations into case records have revealed that a consultant accidentally perforated the liver of an infant referred to as "Baby O", resulting in severe internal bleeding, while another child, "Baby C", received inadequate medical care.
Reviews of the other babies currently on-going, conducted by Letby's new legal defence team.
Sir David stated: "In effect, due to a combination of insufficient resources and suboptimal medical care, the hospital was not equipped to sustain the survival of these extremely vulnerable babies.
“Perhaps most concerning especially in this case is that it represents yet another illustration, more than a decade after the Mid-Staffs scandal, of the NHS's inability to undertake thorough analysis of its own shortcomings”
“This is of paramount importance because, unless it comes to terms with this issue, there will be a continued incidence of avoidable fatalities in hospitals throughout the nation.”
Letby has been denied permission to have her convictions overturned, but her new barrister, Mark McDonald, is planning to lodge an appeal with the Court of Appeal and also refer the case to the Criminal Cases Review Commission.
It is also stated that the defence could have called rebuttal witnesses if they had wished to do so.
At the hospital where Letby worked, she held a trainee position.
Sir David has previously campaigned against ID cards and plans to give the police and security services the ability to monitor people's emails and social media, as well as contesting government agreements with private companies over data.
He has frequently made use of his parliamentary immunity to make matters public knowledge, such as naming Nicola Sturgeon's ex- chief of staff as the person alleged to be behind the leak of allegations of sexual misconduct against Alex Salmond to the newspapers.
Initially elected in 1987, Sir David emerged as a leading contender in the Conservative leadership contest in 2005, ultimately being outmanoeuvred by Lord Cameron.
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