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DOJ Invokes False Claims Act to Probe Corporate DEI Programs

The effort stems from a May memo by Deputy Attorney General Todd Blanche directing investigations of recipients of federal funds that base hiring on DEI.

Overview

  • People familiar with the probes say Google and Verizon received Justice Department demands for documents on workplace diversity initiatives.
  • Prosecutors are pursuing an implied certification theory that treats civil-rights compliance as material to obtaining or keeping federal money.
  • Unlike typical False Claims Act cases sparked by whistleblowers, these inquiries were initiated by political appointees at the department.
  • The reported sweep extends beyond tech to sectors such as automotive, defense, utilities, and pharmaceuticals.
  • Legal experts describe the approach as unusual and potentially difficult to sustain in court, and some companies are reassessing policies as the DOJ declines public comment.