Core Viewpoint - Verily, a health tech subsidiary of Alphabet, is facing serious allegations regarding unauthorized use of health data from over 25,000 patients and attempts to cover up these violations, as claimed by a former executive, Ryan Sloan [1][5][12]. Company Allegations - Ryan Sloan alleges that Verily improperly used patients' protected health information in various contexts, including research and marketing, affecting more than 25,000 patients in its diabetes program [5][6]. - An internal investigation confirmed multiple breaches of HIPAA Business Associate Agreements with large clients between 2017 and 2021 [6]. Legal Proceedings - Sloan's lawsuit, filed in federal court in San Francisco, has not been previously reported and is currently ongoing, with a judge denying Verily's request to dismiss the case [2][3]. - Verily has publicly stated that the allegations are without merit and that it will defend itself fully [3]. Company Operations and Structure - Verily, which began as a project in 2015 within Alphabet's innovation lab, has raised over $1 billion from investors but has struggled to find a successful product [13]. - The company is reportedly transitioning from an LLC to a C-corp structure to prepare for new funding [13]. Response to Allegations - Verily allegedly delayed notifying affected parties about the breaches and concealed the information during contract negotiations with clients [9][10]. - The company suppressed a press release that could have drawn attention to the violations, instructing employees not to mention it again [12]. Executive Actions - Sloan and another executive raised concerns about the breaches to senior management, but were reportedly dismissed, leading to Sloan's termination while on leave [12][11].