Two months ago, Dakota Meyer was awarded the Medal of Honor by President Barack Obama for his service in Afghanistan, the military's most prestigious award. On Monday, Sgt. Meyer alleged that a defense contractor has called him mentally unstable and a problem drinker, ruining his chances for a job in the defense industry.

In legal papers filed Monday, the Marine claims that BAE Systems , where he worked earlier this year, retaliated against him after he raised objections about BAE's alleged decision to sell high-tech sniper scopes to the Pakistani military. He says his supervisor at BAE effectively blocked his hiring by another defense contractor by making the claims about drinking and his mental condition.

Sgt. Meyer's complaint is likely to pose a more difficult challenge for BAE, a British company with extensive U.S. operations, than a typical employment dispute. In the September White House ceremony, Sgt. Meyer was hailed for braving enemy fire as he tried to save the lives of fellow Marines who had been trapped in a Taliban ambush.

BAE said it would defend itself, but comments by BAE officials Monday made clear they don't want to be seen as denigrating a Medal of Honor recipient. "Although we strongly disagree with his claims, which we will address through the appropriate legal process, we wish him success and good fortune in his endeavors," said Brian J. Roehrkasse, a BAE spokesman. He declined to discuss any specifics of the suit.

Through a lawyer, Sgt. Meyer declined to comment on his suit. Representatives of the Pentagon and Marine Corps said they weren't aware of the suit.