A former executive at Verily, Alphabet’s health technology subsidiary, is suing the company, alleging it illegally used the protected health information of more than 25,000 patients and then covered up the violations. Ryan Sloan, who served as Verily Onduo’s chief commercial officer, claims he was fired in retaliation for reporting the breaches of the Health Insurance Portability and Accountability Act (HIPAA) to senior management. The lawsuit, filed late last year and recently receiving a significant legal setback for Verily, details extensive violations spanning several years.
Sloan’s allegations center on Verily’s use of patient data in research, marketing, press releases, and conferences without proper authorization. The amended complaint specifically states that these “extensive violations” affected over 25,000 patients enrolled in Onduo’s diabetes program. The alleged misuse reportedly involved collaborations with major healthcare companies, including Walgreens Boots Alliance, Highmark Health, Quest Diagnostics, and Delta Air Lines. While some companies declined to comment, Delta acknowledged the situation and stated it was investigating the potential impact on its employees.
The lawsuit further alleges that after an internal investigation confirmed multiple HIPAA breaches, Verily intentionally delayed notifying affected parties and concealed the breaches during contract negotiations. This allegedly included misrepresenting its HIPAA compliance to Highmark Health. Furthermore, Verily reportedly suppressed a press release that could have drawn attention to the violations. The company’s actions, according to the lawsuit, extended to the termination of other employees aware of the breaches, including Julia Feldman, Onduo’s general counsel.
Verily denies the allegations, asserting in a statement that they are “completely without merit” and intends to defend itself vigorously. A judge’s recent decision to deny Verily’s motion to dismiss the lawsuit or compel arbitration underscores the seriousness of the claims. This legal battle occurs at a time when Verily, despite substantial investments, is undergoing a restructuring and seeking a consistently successful product line. The case highlights significant concerns regarding data privacy and corporate responsibility within the rapidly expanding health technology sector.
