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Deloitte agrees to pay $21.5 million to settle DOJ probe into DEI practices
Fox Business • • business
Key Points:
- Deloitte agreed to pay $21.5 million to settle DOJ allegations that it violated the False Claims Act by failing to comply with anti-discrimination requirements in federal contracts and discriminating based on race or sex.
- The DOJ claimed Deloitte's business units tracked "demographic goals" and evaluated partners partly on contributions to workforce composition targets aimed at boosting Black and Hispanic representation in promotions.
- The settlement resolves claims brought under the False Claims Act’s qui tam provisions by the American Alliance for Equal Rights, which will receive $4.3 million as part of the agreement.
- Deloitte denies any discriminatory conduct and states the settlement is not an admission of liability, choosing to avoid prolonged litigation.
- The settlement aligns with the Trump administration’s crackdown on diversity, equity, and inclusion (DEI) initiatives, which are viewed by the administration as potentially discriminatory and undermining merit-based decisions.
