Questions abound over the United States Justice Department’s (“DOJ”) aggressive posture towards federal contractors with DEI policies. On April 10, 2026, the DOJ settled with IBM, as the multinational technology company agreed to pay $17 million to resolve allegations its diversity practices violated the False Claims Act. The DOJ asserted that since 2019, IBM improperly tied the bonus compensation of management employees to meeting certain demographic targets related to race, sex, or gender.
The settlement should not be unexpected. The Trump Administration has touted its intention to dismantle what it views as illegal Diversity, Equity, and Inclusion (“DEI”) programs within the government, education, and private sectors from the beginning of its second term. The False Claims Act, which is meant to combat fraud against the United States government, allows for civil penalties for falsely billing the government, over-representing the amount of a delivered product, or understating an obligation to the government. The False Claims Act may be enforced by the DOJ or private individuals in a qui tam proceeding. Based on published reports, no whistleblower was involved in this case.
The government’s False Claims Act theory in the IBM case and in its broader enforcement initiative is essentially a false certification claim. Recipients of federal funds must certify to their compliance with antidiscrimination laws as a condition of receiving payment, and in the government’s view,...
A fake BBC News report that falsely accuses Ukrainian President Volodymyr Zelensky of displaying a stolen painting has been circulating on X since April 21. The footage appears to show the Ukraini...