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Saturday, August 23, 2025

Legal Hurdles Await False Claims Act Attacks on Corporate DEI - Bloomberg Law News

The Trump administration is doubling down on its novel fraud theory targeting government contractors and grant recipients with “discriminatory” diversity programs, even in the face of pending judicial scrutiny.

In a notable shift in False Claims Act enforcement, the Justice Department is actively urging workers to blow the whistle if there’s evidence that their employers defrauded the government by misrepresenting their compliance with anti-bias laws through the use of “illegal” diversity, equity, and inclusion policies.

Attorneys specializing in government contracting and anti-discrimination law are skeptical that the government and private litigants can meet the FCA’s essential elements in this novel ...



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