One and done, or are there more to come?
The U.S. Department of Justice announced a $17 million settlement with International Business Machines Corporation, resolving allegations that its diversity initiatives violated the False Claims Act. This is the first time the federal government has pursued an FCA claim against a federal contractor based on its diversity policies.
President Trump set the stage for federal contractors to be sued for False Claims Act violations when he signed Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” In addition to rescinding Executive Order 11246, the new executive order required federal contractors “to agree that . . . compliance in all respects with all applicable Federal anti-discrimination laws is material to the government’s payment decisions” and “to certify that [the contractor] does not operate any program promoting DEI that violates any applicable Federal anti-discrimination laws.”
A few months after President Trump signed Executive Order 14173, the Department of Justice announced its Civil Rights Fraud Initiative, warning recipients of federal funds that the government was vigorously enforcing anti-discrimination laws and pursuing FCA claims against violators.
The FCA generally provides that any person who knowingly submits false claims to the government can be liable for three times the government’s damages, plus a penalty tied to inflation. According to the Justice Department, the FCA...
The indictment says Tarshea Fudge-Riley and others filed false statements saying they got therapy. Then the therapist allegedly filed false claims for payment. MACON COUNTY, Ga. — Macon County’s el...