Key facts
- Deloitte will pay $21.5 million to settle a U.S. Department of Justice probe.
- The probe alleged Deloitte violated federal equal opportunity requirements related to its DEI practices.
- The Justice Department claimed Deloitte falsely stated compliance with laws preventing discrimination based on race and sex.
- Deloitte denied discriminatory conduct, and the settlement does not constitute an admission of liability.
- The American Alliance for Equal Rights will receive $4.3 million from the settlement.
Deloitte has agreed to pay $21.5 million to settle a U.S. Department of Justice probe into its diversity, equity, and inclusion (DEI) practices. The settlement addresses allegations that the firm falsely claimed compliance with new Trump-administration laws preventing proactive discrimination based on race and sex in its contracts.
The Justice Department claimed that from 2017 onward, Deloitte violated federal law by allegedly tying the compensation and evaluations of some of its most senior partners to meeting non-public, race- and sex-based workforce composition goals. Attorney general Todd Blanche stated that "labelling the practice DEI does not make it lawful" and that the Justice Department "will aggressively pursue government contractors that have used taxpayer dollars to fund unlawful discrimination."
Deloitte resolved the claims through the settlement, with no official determination of liability made against the firm. Associate attorney general Stanley Woodward added that the settlement is an example of the Department's commitment to eliminating "woke, unconstitutional practices from American workplaces."
The American Alliance for Equal Rights, founded by conservative activist Edward Blum, reported Deloitte to the government under the False Claims Act's whistleblower provisions and is set to receive $4.3 million from the settlement. The group has also targeted other organizations over DEI practices, including suing law firms over diversity fellowships. The Trump administration had previously issued executive orders targeting DEI programs and restricting security clearances for law firms involved in such initiatives.