A $750,000 claim over personnel-file statements ran into a wall companies have long relied on
A federal judge threw out a former worker's defamation suit against his old employer, backing a rule every HR team should know.
In a decision dated June 13, 2026, the US District Court for the District of Columbia handed employers a clear reminder about the legal cover they have when answering reference calls.
The case began when a former employee of Protection Strategies, Inc. (PSI), a Knoxville, Tennessee security firm, sued the company without a lawyer. He alleged that after he resigned, PSI "intentionally placed false and defamatory statements" in his "HR" file. According to the filing, the file said he "engaged in workplace misconduct," "had performance issues," was "insubordinate," was "unprofessional," and was "ineligible for rehire."
The worker alleged the file was later passed to a prospective employer during a background investigation, and that he "was denied a federal position" because of it. He said he suffered "loss of employment, hardship financially, hardship emotionally," and a "professionally ruined" name, and he asked for damages "not less than $750,000." Along with defamation, he raised false light invasion of privacy, negligent and intentional infliction of emotional distress, negligent misrepresentation, and tortious interference with prospective employment.
The court dismissed every claim with prejudice, which means the worker cannot bring them again.
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