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A city publicly accuses a contractor of fraud, removes the contractor from an approved-vendor list for three years, and refuses to let the contractor respond before the removal. The contractor brings a procedural due process claim.Which statement best describes the liberty-interest issue?

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Due process never applies to public statements by government officials. A protected liberty interest is more likely if the government's stigmatizing charge is coupled with alteration of legal status or loss of a right or employment opportunity. No liberty interest can exist unless the plaintiff is imprisoned. Reputation alone is always a protected liberty interest requiring a full trial before the government speaks.

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