On November 3, 2026, the Department of Justice (DOJ) and the Equal Employment Opportunity Commission (EEOC) announced a two-part settlement with Lockheed Martin Corporation. Lockheed agreed to pay $22 million to resolve False Claims Act (FCA) allegations concerning certifications of compliance with federal anti-discrimination requirements and approximately $7.5 million to more than 1,000 employees under a related EEOC settlement. The settlement involves what the Trump Administration has labeled “unlawful DEI.”
The United States alleged that, from 2019 through the settlement’s effective date, Lockheed certified compliance with Title VII and Federal Acquisition Regulation clause 52.222-26 while maintaining practices that considered race or sex. The alleged conduct included changing merit-based Compensation Adder selections to address race-related statistical flags, using race- and sex-based goals in hiring and promotion decisions, and limiting certain development opportunities. The government also alleged that Lockheed charged related costs to federal contracts.
The FCA agreement followed a qui tam action filed in the Northern District of Texas by former Lockheed vice president Tim Booher. The United States intervened in part, and Booher will receive $4.4 million plus interest. The DOJ credited Lockheed’s cooperation. The parallel EEOC agreement requires a merit-based workplace and permits EEOC compliance review.
Employment Compliance Can Become Contract Compliance
The notable FCA theory connects internal employment practices to federal contract certifications and cost allowability. Contractors should identify who owns each equal-opportunity certification, test actual practices against it, and preserve the decision-making record for compensation, hiring, promotion, and development programs. Legal, employment, contracts, and compliance teams should also review whether program costs are charged to federal contracts and escalate data or complaints that call a certification into question.
GWB represents government contractors and other organizations in connection with government investigations, employment-related compliance issues, and False Claims Act litigation. If you need assistance with such a matter, contact us today.
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