Overview
- Lockheed will pay $29.5 million to resolve government and EEOC claims, with $22 million to the U.S. government and $7.5 million to more than 1,000 affected employees.
- The settlement resolves allegations that a 2021 merit program that nominated the top 20% for raises used an analysis to “flag” lists by race and sex and that managers were pressured to add or remove nominees based on those demographic flags.
- Former Lockheed vice president Tim Booher, whose complaints prompted federal involvement, will receive $4.4 million under the False Claims Act as the whistleblower’s share of the recovery.
- Lockheed denied liability and said it agreed to the deal to avoid prolonged litigation while the DOJ and EEOC said the agreement requires the company to follow merit-based hiring and promotion practices.
- The case follows similar settlements with other large contractors and could increase legal and compliance pressure on firms that tie personnel decisions to race or sex, with direct payouts for workers who allege harm and possible changes to contractor certification practices.