Deloitte Settles Allegations with $21.5 Million Payment

Accounting and consulting firm Deloitte has reached an agreement to pay the United States $21.5 million to resolve claims that it defrauded the federal government by continuing its diversity, equity, and inclusion (DEI) efforts.

This resolution is part of a broader trend stemming from the previous administration’s initiatives to eliminate policies in federally contracted companies that emphasize immutable traits like race or gender in hiring practices.

Attorney General Todd Blanche stated, “Government contractors cannot reward or penalize employees based on race or sex—and simply labeling it DEI doesn’t make it lawful.” He added that the Justice Department will actively pursue contractors who misuse taxpayer funds to support unlawful discrimination.

Associate Attorney General Stanley E. Woodward Jr. reinforced the stance, emphasizing that “Merit drives opportunity and promotion. Not someone’s sex or race.” He described the settlement as another instance of the Department’s commitment to eradicating unconstitutional practices from workplaces across America.

The Department of Justice (DOJ) contended that Deloitte violated the False Claims Act. They pointed to a legal provision requiring federal contractors to certify non-discrimination against employees based on race or sex. The settlement addresses allegations dating back to 2017, claiming that Deloitte falsely certified compliance while continuing discriminatory practices.

The DOJ specifically accused the company of considering race and sex when making decisions about hiring, promotion, and staffing. They also noted that Deloitte tracked “demographic goals” and provided training and mentoring programs based on those characteristics.

Deloitte, in a statement reported by The Wall Street Journal, expressed satisfaction with the resolution, citing a desire to avoid the costs and distractions associated with lengthy litigation. The company maintains it did not admit to any wrongdoing and denied the allegations made against it.

Notably, former President Donald Trump signed an executive order in January 2025 that aimed to eliminate what he termed “dangerous, demeaning, and immoral race- and sex-based preferences.”