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ARTICLE · 05 JUNE 2025

Navigating Employers' Diversity Program Risks And The False Claims Act

Duane Morris LLP
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The stakes of illegal discrimination in the context of "DEI" have just gotten even higher.

United StatesEmployment and HR
Jonathan Segal
Jonathan Segal
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The stakes of illegal discrimination in the context of "DEI" have just gotten even higher.

On May 19, 2025, Deputy Attorney General Todd Blanche issued a memorandum concerning a "Civil Rights Fraud Initiative" and announcing it would "utilize the False Claims Act to investigate and, as appropriate, pursue claims against any recipient of federal funds that knowingly violates federal civil rights laws."

The Blanche memo encourages use of the False Claims Act (FCA) against federal contractors or grant recipients that "defraud the United States by taking its money while knowingly violating civil rights laws." According to the memo, a federal contractor or grant recipient may implicate the FCA if it "knowingly violates civil rights laws ... and falsely certifies compliance with such laws."

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Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.

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