My friend is applying to a position at a prestigious nearby hospital. They left their last job after suing that hospital over discrimination that was settled out of court in their (my friend's) favor for a mid-6 digit sum. The current application process seemed as though it was going well for them (various contracts had even been signed, although I am unaware of what exactly they entailed i.e. how preliminary these were - but my friend seemed to indicate their signing should have meant they otherwise would have been very likely to actually be hired for the job) until credentialing at this prospective hospital's hiring department requested that my friend withdraw their application without much explanation ("its not a good fit"). Due to the strength of my friend's resume, they and I both seem to think its likely that the credentialing department at this hospital learned of this past lawsuit during my friend's background check, and now perceives that my friend may be a liability to them i.e. perhaps more likely than the average candidate to eventually sue them, as well, for some discrimination concern, and thus the credentialling department (or one of their superiors higher up the chain in human resources) is attempting to dissuade my friend from applying so they can choose a candidate that they perceive will not be accompanied by that liability. My friend would like to know whether the credentialling department would actually have grounds to deny them (or at least come up with a plausible excuse to deny them) just based on the lawsuit they brought against their last employer, or if the credentialing department is just bluffing with their request knowing that they would otherwise have no legal grounds to deny my friend's application if they chose not to withdraw voluntarily. My friend is aware of the risks of having their credentials denied and the appeals process therein, and would prefer to avoid that if possible, but would at the same time really like this job and thinks that in all likelihood this lawsuit is the sole factor in the hospital's reluctance to hire them and doesn't want to give up the opportunity if calling their bluff would mean the credentialling department wouldn't have grounds not to hire them. Should my friend withdraw their application at the credentialling department's request, or attempt to call their bluff (assuming it really is a bluff) considering they were in the right regarding the discrimination lawsuit and the prospective job cannot legally discriminate against them just because of that fact? (...right?) What factors which I may have not included due to my lack of knowledge about this field and its hiring process might influence what my friend's decision should be?
As a side note, my friend has never been the subject of any malpractice claims/lawsuits and received their medical degree at the medical school of a solid American public university. The discrimination lawsuit they settled out of court is public knowledge due to its mention in a relatively quiet news article published at the time of the settlement but that mentions them by full name (and thus appears when one google searches my friend's name and title) and describes the nature of the suit and settlement in somewhat uncharitable-to-my-friend but otherwise dispassionate terms.
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