Overview
- According to a Wall Street Journal report cited by JD Supra, the Justice Department has requested documents from Verizon as part of DEI-related False Claims Act inquiries.
- An executive order titled “Ending Illegal Discrimination and Restoring Merit Based Opportunity” directed agencies to make compliance with federal anti-discrimination laws material to payment decisions and to require related certifications.
- DOJ’s May 19, 2025 memorandum launched a “Civil Rights Fraud Initiative” and asserted that vigorous False Claims Act enforcement is an effective tool for civil-rights enforcement.
- The Office of the Attorney General’s July 29, 2025 guidance stated that using terms like DEI or equity does not excuse unlawful discrimination and that using protected characteristics for opportunities or benefits is unlawful.
- JD Supra notes that while there are arguments against False Claims Act liability, contractors and grantees are advised to review DEI policies with counsel given potential exposure, treble damages, statutory penalties, and possible debarment.