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ARTICLE · 27 MAY 2025

The Future Of The False Claims Act

Lowenstein Sandler LLP
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Lowenstein Sandler LLP

Lowenstein Sandler LLP

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On May 19, 2025, Deputy Attorney General Todd Blanche issued a memorandum titled Civil Rights Fraud Initiative announcing the Department of Justice's (DOJ)...

United StatesCriminal Law
Rachel Maimin
Rachel Maimin
Robert A. Johnston Jr.
Robert A. Johnston Jr.
Kathleen A. McGee
Kathleen A. McGee
Jason Gould
Jason Gould
Scott B. McBride
Scott B. McBride
Alessandra Moore
Alessandra Moore

On May 19, 2025, Deputy Attorney General Todd Blanche issued a memorandum titled Civil Rights Fraud Initiative announcing the Department of Justice's (DOJ) plan to use the False Claims Act (FCA) to "aggressively" pursue government contractors and any recipients of federal funds that knowingly violate civil rights laws. Blanche's memo comes on the heels of President Trump's January 21, 2025 executive order (EO), which targeted diversity, equity, and inclusion (DEI) programs at companies and organizations that do business with the federal government. The memo now puts into motion the enforcement mechanisms that the EO contemplated. And it marks a potentially seismic shift in FCA enforcement, one that creates substantial risk for any entity that contracts with or receives funding from the federal government, due to the FCA's treble damages provision. But as explained below, any organization investigated or sued under the FCA for its DEI programs would likely have strong

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