Alphabet’s (GOOG, GOOGL) health-tech unit Verily is reportedly facing allegations that it improperly used data from more than 25,000 patients and concealed the violations, according to a lawsuit filed by a former executive.
CNBC reported that former employee Ryan Sloan claimed he was fired after flagging breaches of the Health Insurance Portability and Accountability Act (HIPAA) to senior management. The report added that his complaint was filed in federal court in San Francisco late last year and had not been previously reported.
It said that a judge rejected Verily’s bid to dismiss the case or move it into arbitration, allowing the lawsuit to proceed on Monday. “Verily believes the allegations and contentions alleged in this employment matter that was commenced in 2023 are completely without merit. Verily will defend itself to the full extent of the law,” a company spokesperson said in a statement to CNBC.
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