On April 9, 2026, we issued an update on President Trump’s March 26, 2026 Executive Order, Addressing DEI Discrimination by Federal Contractors, warning that the EO’s False Claims Act enforcement architecture, including its explicit instruction to the DOJ to expedite review of qui tam whistleblower actions under 31 U.S.C. § 3730, was not aspirational. It was operational. We did not expect to be proven right almost immediately.
On April 10, 2026, fifteen days after the EO was signed, the Department of Justice announced a $17,077,043 settlement with International Business Machines Corporation (IBM) to resolve False Claims Act allegations that IBM knowingly certified compliance with federal anti-discrimination requirements while maintaining race- and sex-based employment practices across its federal contracting operations. The settlement was signed by Associate Attorney General Stanley H. Woodward, Jr., a signal that DOJ leadership is personally invested in this enforcement initiative.
This is the first major FCA enforcement action under the new DEI contracting framework. It will not be the last. And for ANCs, tribes, and Native Hawaiian Organizations engaged in federal contracting, the implications could be significant, not because their hiring preferences are unlawful, but because this settlement shows how quickly the government is moving and how broadly it is defining the conduct that triggers liability.
The settlement agreement identifies four categories of “Covered...
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...