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Judge Lets Whistleblower Suit Against Verily Proceed Over Alleged HIPAA Breaches

A failed bid for arbitration clears the way for scrutiny of Verily's breach notifications.

Overview

  • Former executive Ryan Sloan alleges Verily used protected health information from more than 25,000 Onduo diabetes patients without authorization for research, marketing, press releases, and conferences.
  • An amended complaint says an internal probe from January to March 2022 confirmed multiple breaches across 14 HIPAA Business Associate Agreements dating from 2017 to 2021.
  • The filing claims Verily delayed required notifications to covered entities and negotiated contract renewals without disclosing recent breaches.
  • The complaint describes retaliation, including the August 2022 termination of Onduo’s general counsel Julia Feldman and Sloan’s January 2023 firing while he was on protected leave.
  • Organizations named as potentially affected partners include Walgreens Boots Alliance, Highmark Health, Quest Diagnostics, and Delta Air Lines, while Verily denies the allegations and says it will defend itself.