Accounting and consulting firm Deloitte agreed to pay the United States $21.5 million to settle allegations that it defrauded the federal government by continuing company DEI (diversity, equity, and inclusion) initiatives, according to the source.
What DOJ alleged, per the source
The source states the Justice Department alleged Deloitte violated the False Claims Act by falsely certifying compliance with federal contracting requirements that prohibit discrimination based on race or sex. The department’s allegations, as summarized by the source, cover 2017 to the present and claim Deloitte took race and sex into account in hiring, promotions, and staffing; tracked “demographic goals”; and offered trainings and mentoring programs based on race and sex.
“Government contractors cannot reward or penalize employees based on race or sex — and labeling the practice DEI does not make it lawful,” the source quotes an Attorney General as saying. The source also attributes the line, “Merit drives opportunity and promotion. Not someone’s sex or race,” to an Associate Attorney General.
Deloitte’s response
According to the source, Deloitte said in a statement reported by The Wall Street Journal that it was pleased to resolve the matter “to avoid the cost and distraction of protracted litigation.” By agreeing to the settlement, the firm did not admit liability and denied engaging in the alleged conduct, the source reports.
