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ARTICLE · 10 APRIL 2026

DOJ Announces First DEI-Related False Claims Act Settlement

Duane Morris LLP
Duane Morris LLP
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On April 10, 2026, the U.S. Department of Justice (DOJ) announced its first False Claims Act (FCA) settlement arising from allegations that an organization’s diversity, equity and inclusion (DEI) programs constituted illegal discrimination.

United StatesCriminal Law
Daniel Walworth
Daniel Walworth
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On April 10, 2026, the U.S. Department of Justice (DOJ) announced its first False Claims Act (FCA) settlement arising from allegations that an organization’s diversity, equity and inclusion (DEI) programs constituted illegal discrimination. The $17 million settlement, announced by DOJ's Civil Division, resolved allegations of unlawful DEI practices in connection with federal funding. All recipients of federal funds should take note of this shift from policy pronouncements to tangible, concrete enforcement action.

The Settlement

Notably, the settlement did not arise from a whistleblower-filed qui tam action. Rather, the matter was a government-initiated investigation, underscoring that the government itself is actively identifying and pursuing potential violations. The settlement resolved FCA claims arising from the following alleged practices:

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