Deloitte Pays $21.5 Million to Resolve DEI-Related False Claims Act Case

On August 25, 2026, the Department of Justice (DOJ) announced that professional services firm Deloitte had agreed to pay $21.5 million to resolve allegations that several of its “DEI” employment practices violated federal anti-discrimination requirements incorporated into government contracts and, by extension, the False Claims Act (FCA).

On August 25, 2026, the Department of Justice (DOJ) announced that professional services firm Deloitte had agreed to pay $21.5 million to resolve allegations that several of its “DEI” employment practices violated federal anti-discrimination requirements incorporated into government contracts and, by extension, the False Claims Act (FCA).

According to the government’s press release, Deloitte’s federal contracts required it to provide equal employment opportunities without regard to race or sex. The government alleged that Deloitte certified compliance with those requirements while maintaining employment practices that considered race or sex, including:

• Establishing nonpublic workforce-composition goals and tracking business units’ progress toward those goals;
• Considering progress toward demographic goals when evaluating certain partners, principals, and managing directors;
• Identifying promotion candidates by race and sex and encouraging decision-makers to maintain a desired demographic composition;
• Considering employees’ race or sex when making federal-project staffing decisions; and
• Limiting certain training, mentoring, sponsorship, and leadership-development programs to employees of specified races or sexes.

Some examples of this allegedly “unlawful” behavior included:

• Establishing an “aggressive” goal of demonstrating “Deliotte’s commitment to putting Black and Hispanic/Latinx cohorts first”;
• Establishing goals to increase the total number of Black, Hispanic, Latinx, and female professionals;
• Establishing a National DEI Office, with the goal of “driving behavioral change”;
• Running career and leadership development programs that were “limited on the basis of race and sex.”

DOJ alleged that Deloitte allocated some costs associated with these practices to federal contracts and sought reimbursement from the government. The settlement agreement states that Deloitte had been credited under the DOJ’s Guidelines related to FCA Cooperation Credit.

Under the settlement agreement. The whistleblower, the American Alliance for Equal Rights, , will receive $4.3 million as its relator’s share.

Compliance implications

The settlement illustrates how certain employment practices—even those that were designed to comply with the federal government’s past interpretation of federal law—may create exposure beyond traditional discrimination claims. For federal contractors and other recipients of government funds, when the organization has certified compliance with civil-rights requirements as a condition of receiving federal money, such violations can turn into FCA claims with the potential for significant damages and penalties.

The whistleblower component is equally significant. The DOJ’s Civil Rights Fraud Initiative expressly encourages individuals with information about alleged discrimination by federal-funding recipients to file qui tam actions. The $4.3 million relator’s share in this matter provides a substantial incentive for similar claims.

GWB represents businesses and individuals in connection with government investigations and False Claims Act litigation. If you need assistance with such a matter, contact us today.