Second Settlement Under the Civil Rights Fraud Initiative Highlights Increased False Claims Act Scrutiny of Federal Contractors’ DEI-Related Practices

On August 25, 2026, the Department of Justice (“DOJ”) announced a $21.5 million civil False Claim Act (“FCA”) settlement with the large professional services (consulting) firm, Deloitte LLP (“Deloitte”). [1] The settlement, the second reached under the DOJ’s Civil Rights Fraud Initiative, highlights the types of diversity, equity, and inclusion (“DEI”) practices targeted as part of the current administration’s campaign against DEI, as well as a pattern of enforcement targeting DEI practices in place prior to the current administration’s revised approach to enforcing federal antidiscrimination