The Trump administration is investigating diversity initiatives at major companies under the False Claims Act, a federal law the Justice Department uses to take action against contractors that defraud the government.
As USA TODAY reported in October, the DOJ earlier this year began issuing civil investigative demands to employers across a broad range of industries, directing them to turn over information about their diversity, equity and inclusion programs.
The use of CIDs – a legal tool that allows the government to gather information during a civil investigation and that usually is reserved to pursue government contractors that submit fraudulent bills for their services – has rattled corporate America because it leaves companies vulnerable to claims that could reach into the millions of dollars.
Among the companies that have received Justice Department investigative demands are Alphabet’s Google and Verizon Communications, the Wall Street Journal reported. Google could not be immediately reached for comment. Verizon declined to comment.
Just hours after he took the oath of office, President Donald Trump issued executive orders to dismantle diversity programs and directed federal contractors to end "illegal DEI discrimination." Fearing lawsuits and the loss of government contracts, dozens of the nation’s largest companies from McDonald’s to Facebook owner Meta rolled back or eliminated DEI programs.
In May, the Justice Department signaled its...
The Trump administration is reviewing diversity-related initiatives at major U.S. companies using a federal civil law that allows the government to recover money lost through fraud, according to r...