Federal Targets, First Settlement Underscore Corporate DEI Risks, Bloomberg Law

Partner Lisa Dykstra was quoted by Bloomberg Law in an article examining the US Department of Justice’s first settlement under its “civil rights fraud” initiative and the resulting risks for corporate diversity, equity, and inclusion (DEI) programs.

The article discusses how a recent $17 million settlement with a federal contractor signals increased enforcement under the False Claims Act and growing scrutiny of DEI-related practices, including those tied to compensation, hiring, and supplier diversity. Lisa emphasized that, despite potential defenses, companies may still opt to resolve these matters given the broader business considerations and risks associated with prolonged litigation.

“There are a lot of reasons to make a business decision to settle a False Claims Act case, even when a company has defenses,” she said.

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