Key Points

• Former Verily executive Ryan Sloan has filed a lawsuit against the company, alleging it repeatedly covered up HIPAA breaches that affected more than 25,000 patients.
• Sloan, who was chief commercial officer of the diabetes and hypertension business, claims the company wrongfully retaliated by firing him, according to the filing.
• Verily is a health tech subsidiary of Alphabet and operates under its "Other Bets" category.

Alphabet's health tech subsidiary Verily used the health data of more than 25,000 patients without authorization and actively covered up those violations, a former company executive alleges.

The executive, Ryan Sloan, claims Verily fired him after he discovered breaches of the Health Insurance Portability and Accountability Act, or HIPAA, and reported his concerns to the company's senior management.

Patient data in the U.S. is protected under HIPAA, which ensures the sensitive information cannot be disclosed without a patient's consent.

Sloan's allegations are detailed in a pending lawsuit in federal court in San Francisco. The suit, which was filed late last year, has not been previously reported.

On Monday, the judge overseeing Sloan's case denied a request by Verily to dismiss his civil complaint, or to send the dispute to arbitration.

"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...

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