Key facts
- Deloitte will pay $21.5 million to settle a U.S. Department of Justice probe.
- The probe focused on diversity, equity, and inclusion (DEI) practices at Deloitte.
Accounting firm Deloitte will pay $21.5 million to settle a U.S. Department of Justice probe into its diversity, equity, and inclusion (DEI) practices. The settlement resolves claims that Deloitte's DEI goals impacted promotion decisions, which the Trump administration had targeted.
The settlement highlights the ongoing scrutiny and legal challenges faced by diversity, equity, and inclusion initiatives in the United States, particularly under administrations critical of such programs. It underscores the potential legal risks for companies implementing DEI policies.
Accounting firm Deloitte has agreed to pay $21.5 million to settle a U.S. Department of Justice probe concerning its diversity, equity, and inclusion (DEI) practices. The settlement addresses allegations that Deloitte's workforce composition goals, particularly those aimed at improving representation for Black and Hispanic communities, influenced promotion decisions.
The probe was conducted by the DOJ's "Civil Rights Fraud Initiative," which targets DEI policies under a civil anti-fraud law. The Trump administration had previously cracked down on DEI practices, viewing them as discriminatory against white people and men, and signed executive orders aimed at eliminating them among federal contractors.
Deloitte denies any discriminatory conduct, and the settlement agreement explicitly states it does not constitute an admission of liability. The company expressed satisfaction in resolving the matter to avoid the costs and distractions of prolonged litigation. The settlement also resolves claims brought by the American Alliance for Equal Rights, a group founded by affirmative action opponent Edward Blum, under the U.S. False Claims Act. Blum's group is set to receive $4.3 million from the settlement.