Lawsuit Challenges HHS Layoffs, Alleging Flawed Data and Privacy Act Violations

Former HHS Employees Sue Over "Error-Ridden" Termination Process

In a significant development for the pharmaceutical industry and government health sectors, seven former employees of the Department of Health and Human Services (HHS) have filed a class action lawsuit against Secretary Robert F. Kennedy Jr. and other high-ranking officials. The suit, filed on Tuesday, alleges that the recent mass layoffs at HHS were based on inaccurate personnel records, potentially violating the Privacy Act.

The plaintiffs claim that HHS leadership was aware of systemic inaccuracies in the staff records used to guide layoff decisions. These records were reportedly shared with other federal bodies, including the Department of Government Efficiency (DOGE), the Office of Personnel Management, and the Office of Management and Budget, despite known errors.

High-Profile Defendants and Allegations of Mismanagement

The lawsuit names several prominent figures as defendants, including:

• Robert F. Kennedy Jr., Secretary of Health and Human Services
• Marty Makary, FDA Commissioner
• Elon Musk, referred to as the "de facto leader of DOGE"

The complaint alleges that these officials and agencies used flawed data to terminate approximately 10,000 employees. Specific issues cited in the lawsuit include:

• Reduction-in-force notices containing incorrect performance ratings
• Instances where defendants appeared unaware of employees' work locations
• An acknowledgment by an HHS spokesperson that errors in terminations were due to inaccurate data from "multiple, siloed HR divisions"

Legal Implications and Ongoing Challenges

The lawsuit argues that the use of inaccurate records for termination decisions violates the Privacy Act, which provides recourse for employees facing adverse actions based on flawed records. This legal action is the second attempt to halt Kennedy's extensive reorganization of HHS, following a preliminary injunction issued by a California court last month that temporarily paused the layoffs.

The situation has created widespread confusion within affected agencies. Reports indicate that some FDA staff continue to receive pay and benefits while on administrative leave, awaiting final legal determinations on their employment status.