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Deloitte agrees to pay $21.5 million to settle US DEI probe
The settlement, reached via the DOJ’s Civil Rights Fraud Initiative, resolves claims tied to monthly internal tracking of “demographic goals,” with $4.3 million going to a whistleblower group.
Accounting firm Deloitte has agreed to pay $21.5 million to settle a U.S. Department of Justice probe into diversity, equity and inclusion practices, according to Insurance Journal. The DOJ says the resolution was pursued under a unit it created last year, the Civil Rights Fraud Initiative, using a civil anti-fraud law to scrutinize DEI policies.
The DOJ said Deloitte business units produced monthly summaries tracking the firm’s “demographic goals,” and that partners and managing directors were evaluated in part based on contributions toward workforce composition targets. Prosecutors alleged those DEI goals were aimed at improving representation of Black and Hispanic communities and affected promotion decisions.
Deloitte denies it engaged in discriminatory conduct, and the settlement agreement states it does not amount to an admission of liability. The firm said it was pleased to resolve the matter to avoid the cost and distraction of prolonged litigation.
The settlement also resolves claims associated with the American Alliance for Equal Rights, a group founded by affirmative action opponent Edward Blum, brought under the U.S. False Claims Act. The DOJ said Blum’s group will receive $4.3 million, and whistleblowers are entitled to a share of recoveries in cases filed on the government’s behalf.