Last year, the DOJ announced that it would begin investigating government contractors for potential violations of the False Claims Act (FCA) based on those companies’ Diversity, Equity and Inclusion (DEI) programs. Earlier this year, the DOJ outlined how the government could use the FCA to enforce what has been described as “illegal DEI” for potential violations of anti-discrimination law. Now, this type of enforcement is no longer theoretical, as the DOJ reached its first settlement based on this theory of FCA liability.
On April 10, 2026, the DOJ announced a settlement for over $17 million with IBM based on allegations related to IBM’s operation of internal DEI programs. This is the first FCA resolution secured under the Civil Rights Fraud Initiative, launched in May 2025. The government alleged that IBM violated anti-discrimination provisions “as incorporated into its federal contracts.” Those provisions allegedly required that IBM not discriminate against employees or applicants based on protected categories, including race, sex, and national origin. The government alleged that by using these protected categories to make hiring, compensation, and interviewing decisions, IBM engaged in illegal discrimination, in violation of its federal contracts and the FCA. In the settlement agreement, IBM denied it engaged in the alleged conduct, and admitted no liability.
Notably, the DOJ appears to have brought this action on its own, without the involvement of whistleblowers, who...
Three Oklahomans have been charged as part of a federal crackdown on health care fraud throughout the United States. More than 450 people, including doctors and nurse practitioners across 45 states...