Former leader sues Mayo, alleges retaliation for raising AI oversight concerns

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A former Mayo Clinic research director has sued the health system, alleging she was demoted and ultimately fired after repeatedly raising concerns about the health system’s oversight of artificial intelligence research projects.

Traci Tamiko Eto filed the lawsuit July 6 in U.S. District Court for the District of Minnesota. The lawsuit names Mayo Clinic as the defendant and seeks a jury trial. The lawsuit was viewed by Becker’s.

Ms. Eto joined Mayo in December 2023 as director of research operations, according to the complaint, and was tasked with aligning the health system’s research practices with a federal executive order on AI governance issued in October 2023. She oversaw a team of 36 employees and three managers.

The lawsuit alleges that over roughly 18 months, Ms. Eto identified a series of lapses in Mayo’s compliance with federal research standards, including a bypassed institutional review board review, mishandling of patient data and, in one instance, authorization of a cardiac surgical device procedure that had not undergone institutional review board (IRB).

Among the allegations, the complaint says a 2024 study of Mayo’s digital assistant tool, MAYA, mischaracterized outcomes, deleted unfavorable results and used unauthorized software. The lawsuit says 10 separate whistleblower reports raised similar concerns, alleging researchers sought to conceal a 67% error rate, but that the study was ultimately approved and exempted from IRB inspection.

The complaint alleges that after Ms. Eto reported concerns to Mayo’s legal department in February 2025, she was excluded from leadership meetings and later told she could resign or face consequences in her personnel file. She was placed on a corrective action plan in April 2025, which she challenged through Mayo’s human resources department; the complaint alleges HR did not conduct a meaningful investigation.

According to the lawsuit, Ms. Eto was allegedly demoted from a supervisory role in July 2025 and subsequently took medical leave under the Family and Medical Leave Act, which Mayo initially denied before approving it after Ms. Eto retained an attorney. While on leave, in September 2025, she was notified that her position was being eliminated as part of what the complaint describes as a reduction in force affecting only her role. She was terminated Dec. 1, 2025, after applying for 15 internal positions and receiving one interview.

The complaint also alleges that Mayo maintains an internal “ghost file” system that flags former employees who raised compliance concerns as “Not Eligible for Rehire” in external verification systems, and that Ms. Eto’s inventor interest in a patent for an AI tool she developed was diminished after her supervisor excluded her from a related patent filing during her leave.

The lawsuit brings claims under the retaliation provision of the False Claims Act, the Americans with Disabilities Act and the Family and Medical Leave Act. Ms. Eto is seeking back pay, front pay, compensatory and punitive damages, and attorneys’ fees.

Ms. Eto filed a discrimination and retaliation charge with the Equal Employment Opportunity Commission in February 2026 and received a right-to-sue letter in April 2026, according to the complaint.

“Mayo Clinic is committed to the responsible development and deployment of AI, with privacy, security, transparency and compliance embedded throughout our processes,” a spokesperson for the Rochester, Minn.-based health system told Becker’s. “Our research and clinical innovation are conducted in accordance with applicable laws and regulations and we remain steadfast in upholding the trust patients place in us and respecting their privacy. Mayo Clinic does not comment on pending or active litigation.”

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