In the case of Codd v. Velger, Robert Velger, a New York City police officer who had been dismissed from his job due to an alleged suicide attempt while off-duty, sued for reinstatement and damages under Section 1983 of the Civil Rights Act. He claimed that his dismissal without a hearing violated his constitutional rights to procedural due process because it was based on stigmatizing information in his personnel file which he could not challenge or correct. The Supreme Court ruled against him in a 7-2 decision stating that since there was no public disclosure by the city about why he was fired (the stigma), there were no grounds for claiming violation of procedural due process rights as per Paul v Davis precedent. Justice Rehnquist wrote for majority opinion and emphasized that defamation by government is actionable only if it occurs during course of altering legal status like termination.

In the dissenting opinion for Codd v. Velger, Justice William J. Brennan Jr., joined by Justices Thurgood Marshall and Byron R. White, argued that Robert Velger's due process rights were violated when he was dismissed from his job as a New York City police officer without an opportunity to refute allegations about him in official reports. The majority ruled against Velger on procedural grounds because he had not requested a hearing before being fired; however, the dissenters contended that this requirement should be waived given the severity of the accusations made against him (which included attempted suicide). They believed these charges could potentially damage his reputation and ability to find future employment in law enforcement or related fields - thus constituting "stigma" under existing case law which would entitle him to a hearing.