The U.S. Department of Justice said certain candidates were highlighted to leadership and directed into a “pipeline” due to their race and sex characteristics.

Dive Brief:

• Management and technology consulting firm Accenture will pay $25 million to settle U.S. Department of Justice allegations it has discriminated in its hiring and promotional practices based on race and sex in violation of the False Claims Act since 2017, according to a DOJ announcement Monday.
• According to DOJ’s allegations, Accenture took race and sex into account in both hiring and promotions in order to more heavily favor candidates who advanced their demographic goals. DOJ also alleged that certain training, partnerships, mentoring, leadership development programs and other opportunities were limited by race and sex.
• Under the second Trump administration, DOJ has used the False Claims Act to crack down on federal contractors’ diversity, equity and inclusion efforts. Deloitte agreed to pay $21.5 million to settle similar allegations in late August.

Dive Insight:

The False Claims Act imposes liability on companies that knowingly submit false or fraudulent claims for payment to the federal government. Law firm Helmer, Martins, Tate and Garrett noted in April that the “landscape is shifting rapidly” when it comes to FCA enforcement, with DOJ’s Civil Rights Fraud Initiative using the law to target DEI goals and methods.

“Most federal contracts contain a provision that requires contractors to provide...

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