Oppenheimer, who died in 1967, led the Manhattan Project, which developed the atomic bombs dropped on Hiroshima and Nagasaki during World War II.
The theoretical physicist was later accused of having communist sympathies and his security clearance was revoked following a four-week, closed-door hearing.
Years later, an Atomic Energy Commission lawyer concluded after an internal review that "the system failed" and a "substantial injustice was done to a loyal American," according to the secretary's order. U.S. Sen. Patrick Leahy of Vermont applauded the reversal, saying the 1954 decision followed a "manifestly unjust and unethical hearing that would be resoundingly condemned today."
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