$25 Million False Claims Act Settlement Against Global Consulting Firm Signals DOJ Fraud Division’s Continuing Scrutiny of Employment Practices
The U.S. Department of Justice has settled a $25 million False Claims Act case against a global consulting firm for allegedly violating anti-discrimination requirements in federal contracts. The case highlights the DOJ's increased scrutiny of diversity and inclusion programs in the workplace.
Why it matters
This signals a shift in federal enforcement priorities regarding how corporations implement DEI initiatives while maintaining compliance with federal non-discrimination laws.
Last month, the DOJ issued a memorandum announcing its priorities for the newly-created National Fraud Enforcement Division ("Fraud Division"), signaling the administration's intent to create a single DOJ unit focused on prosecuting all aspects of fraud including civil fraud, criminal fraud, tax fraud, and related white collar crimes. In part, the memorandum announced that the Fraud Division will bring a "whole-of-government approach" to fraud that uses, among other things, increased resources and personnel, data driven analytics, civil and criminal forfeiture tools, and the False Claims Act ("FCA") as a means to combat fraud, waste and abuse.
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