Verily Faces Lawsuit Alleging Repeated HIPAA Breaches Affecting Thousands of Patients
Are you concerned about the security of your health data? The healthcare industry is increasingly reliant on technology, making patient data a prime target for breaches. Recent allegations against Verily, Alphabet’s life sciences subsidiary, highlight the critical importance of data privacy and the potential consequences of its violation. This article delves into the details of a notable lawsuit, the alleged breaches, and what it means for patients and the future of digital health.
the Allegations: A Pattern of HIPAA Violations and Retaliation
Verily,a company aiming to revolutionize healthcare through technology,is now embroiled in a legal battle with former Chief Commercial Officer ryan Sloan.Sloan alleges a disturbing pattern of repeated HIPAA (Health Insurance Portability and Accountability Act) breaches,impacting over 25,000 patients enrolled in Verily’s Onduo diabetes program. The lawsuit, filed in federal court in San Francisco and first reported by CNBC (https://www.cnbc.com/2025/09/11/alphabet-verily-hipaa-diabetes-whistleblower.html?&qsearchterm=alphabet), paints a picture of a company prioritizing public image over patient privacy.
The core of the complaint centers around the alleged unauthorized use of Protected Health Information (PHI). According to the amended complaint filed in June, Sloan and Onduo’s General counsel, Julia Feldman, discovered in January 2022 that Verily was utilizing patient data for purposes beyond those explicitly authorized – including research initiatives, marketing campaigns, press releases, and presentations at national conferences.
Timeline of Events: From Finding to Dismissal Denial
The alleged breaches weren’t isolated incidents. An internal investigation reportedly confirmed multiple HIPAA violations occurred between 2017 and 2021. This raises serious questions about Verily’s data security protocols and compliance oversight during a crucial period of growth and expansion.
Here’s a breakdown of the key events:
* January 2022: Sloan and Feldman discover the unauthorized use of patient data.
* 2017-2021: Internal investigation reveals multiple HIPAA breaches.
* August 2022: Feldman and another employee aware of the breaches are terminated.
* October 2022: Sloan raises concerns again, allegedly met with justification for non-disclosure based on potential public relations damage.
* January 2023: Sloan is terminated while on protected leave.
* Recent: A judge denies Verily’s motion to dismiss the civil complaint or move the dispute to arbitration, allowing the case to proceed.
Who was possibly affected? Patients who accessed Verily Onduo through partnerships with major healthcare providers and companies like Walgreens Boots Alliance, Highmark Health, Quest Diagnostics, and Delta air Lines may have had their data compromised.
The Allegation of Retaliation: Silencing Concerns?
The lawsuit doesn’t stop at data breaches. Sloan alleges he was wrongfully terminated after repeatedly raising concerns about the HIPAA violations. He claims a Verily executive actively defended the decision not to disclose the breaches, citing potential negative repercussions for the company’s public image. This accusation of retaliation is a significant component of the case, potentially strengthening Sloan’s claims and highlighting a culture of prioritizing profits over patient rights.
Judge Denies dismissal: What This Means for the Case
The recent denial of Verily’s request to dismiss the lawsuit is a crucial advancement.It signifies that the court believes Sloan’s claims have enough merit to warrant a full trial. This decision keeps the pressure on Verily and allows the case to move forward, potentially uncovering further details about the alleged breaches and the company’s response.
Verily’s Broader Struggles and Future Outlook
This lawsuit arrives at a challenging time for Verily.Despite raising over $1 billion in funding, the company has faced difficulties in establishing a consistently successful product. Its strategic direction has shifted multiple times, from hardware development to pandemic response and, most recently, a focus on precision health. Currently, Verily is reportedly transitioning to a C-Corp structure, a move frequently enough associated with preparing for a new round of funding or a potential acquisition. (https://verily.com/)
Is Verily’s future at risk? The lawsuit, coupled with its past struggles, could further complicate
