Trump’s Justice Department probes Google, Verizon over DEI policies, citing fraud law: report
The Trump administration is intensifying its crackdown on DEI, launching investigations into the use of diversity initiatives in hiring and promotion at companies such as Google and Verizon.
These probes, led by the Justice Department under the False Claims Act, aim to uncover any misuse of federal funds by companies that implement DEI policies, as reported by The Wall Street Journal.
Deputy Attorney General Todd Blanche issued a memo in May directing DOJ officials to investigate and take legal action against any recipient of federal funds that bases its hiring practices on DEI.
This initiative is part of a broader DOJ effort to use the False Claims Act for civil rights enforcement, expanding its scope beyond financial fraud in areas like defense contracting and healthcare billing.
Under the current administration’s legal interpretation, companies that claim compliance with federal anti-discrimination laws while implementing discriminatory DEI programs could be liable for submitting false claims for government payment.
Companies like Google and Verizon have already been requested by the Justice Department to provide documents related to their diversity programs.
It is unclear which other companies may be under DOJ investigation regarding DEI practices.
Some companies have engaged in discussions with Justice Department officials regarding these probes.
False Claims Act investigations are typically initiated by whistleblowers or internal government watchdogs pointing out suspected fraud.
In this case, the investigations were launched by politically appointed DOJ officials who argue that companies with federal contracts are breaching their obligations by maintaining discriminatory DEI policies.
The DOJ’s enforcement of the False Claims Act, known as implied certification, allows the government to assert that compliance with civil rights laws is crucial for receiving federal funds.
The policy targets companies with federal contracts that continue to implement DEI policies despite the administration’s executive order ending affirmative action-style programs.
Legal experts suggest that the DOJ’s approach may face legal challenges as the government needs to prove that companies made material misrepresentations to secure federal contracts or submit payment claims.
The investigations have caused concern in the corporate sector as False Claims Act violations can result in hefty fines and whistleblower lawsuits.
Companies are reevaluating their DEI programs amidst legal uncertainties and pending court decisions on the administration’s executive order.
Google and Verizon have been contacted for comments, and the DOJ declined to provide a statement.
The original article source can be found here.
