DOJ Reportedly Launches Investigations Into Government Contractors' DEI Programs

Summary

Building upon prior statements and positions on the issue, the Department of Justice ("DOJ") has reportedly opened investigations into federal government contractors and grant recipients with diversity, equity, and inclusion ("DEI") programs for purported violations of the False Claims Act. To protect against significant expense in responding to a civil investigative demand or potential liability, federal contractors and grantees should review their programs and policies with counsel. By taking proactive steps, federal contractors and grantees can assess and manage the risks of increased exposure.

According to a report from The Wall Street Journal, the DOJ is using the False Claims Act to investigate government contractors with DEI programs, reportedly demanding documents from companies such as Verizon. As we reported earlier, this is based on an executive order from the Administration entitled "Ending Illegal Discrimination and Restoring Merit Based