Trump administration is investigating Diversity initiatives in large companies under the False Claims Act, a national law under which the Justice Department takes action against contractors cheating the government. How reported the USA present diary in October, Department of Justice began to issue employers from a wide scope of industries demanding civilian investigation, ordering them to supply information on diversity, equality and integration programmes.
The usage of CIDs – a legal tool allowing the government to collect information during a civilian investigation, usually reserved to prosecute government contractors who issue false bills for their services – shocked American corporations due to the fact that it exposes companies to claims that could scope millions of dollars.
According to the Wall Street Journal, Among the companies that received demands in the course of the Justice Department's investigation are Google, belonging to the Alphabet, and Verizon Communications . It has not yet been possible to contact Google for comment. Verizon refused to comment.
Department of Justice strengthens DEI control
Just a fewer hours after the president took his oath Donald Trump issued executive orders decommissioning of diversity programmes and ordered national contractors to put an end to it "illegal discrimination against DEI". Fearing lawsuits and failure of government contracts, tens of the largest companies in the country, from McDonald’s to Facebook owner, Meta, have withdrawn or eliminated DEI programs.
In May, the Department of Justice signalled its intention to analyse national contractors and grant beneficiaries, creating a "civil rights fraud initiative" which threatens to take legal action under the False Claims Act, civilian law allowing the government to recover funds lost as a consequence of fraud.
The government's control has increased further as Trump administration is taking decisive steps to exert force on employers to change recruitment practices and They adapted them to the President's political program..
During his deposition to the legislature Judicial Commission in July, Harmeet Dhillon, Deputy lawyer General for civilian Rights, issued a informing concerning the Trump administration's repression of DEI initiatives. During her testimony, Dhillon promised that the Trump administration would launch “many investigations and lawsuits against institutions that proceed to violate our national civilian rights”.
"Or DEI will vanish by itself," he told Dhillon to senators, "or we will destruct them."
Court proceedings based on the False Claims Act can be costly
Lawyers informed USA present that damages and penalties in false claims litigation could rapidly accumulate. The defendants hazard being held liable for harm 3 times as much as the government claims.
Moreover, the Department of Justice encourages whistleblowers to submit DEI lawsuits on behalf of the Government and the possible to receive any of these unexpected benefits. Last year, the Department of Justice acquired nearly $3 billion from settlements and judgments issued under the False Claims Act.
The threat of initiating an investigation under the False Claims Act is simply a powerful weapon, claims lawyers. And it will become the mark of the Trump administration's attack carries a serious business risk, from the harm to reputation after collective shareholders' lawsuits.
“Many leaders told me, “From a purely legal point of view, we are very certain of what we are doing,” said present David Glasgow, Executive manager of the Center for Diversity, Inclusion and Property at the School of Law of the University of fresh York in October. “And then many of them said to me, “It doesn’t truly substance if this administration has us into a swamp.”
