Deloitte to pay $21.5 million to settle US government probe over DEI

Deloitte has agreed to pay $21.5 million to settle a U.S. Department of Justice investigation into the company's diversity, equity and inclusion (DEI) practices. The settlement is the result of a probe conducted by the DOJ's Civil Rights Fraud Initiative, which targeted DEI policies using an anti-fraud civil law. The Trump administration has been actively targeting DEI practices in both public and private sectors, including government agencies and universities, claiming that DEI promotes anti-merit and discriminates against white men.

The DOJ alleged that Deloitte's DEI goals, which aimed to improve representation of Black and Hispanic communities, influenced promotion decisions. Deloitte denies any discriminatory conduct and maintains that the settlement does not constitute an admission of liability. The company welcomed the resolution to prevent protracted litigation.

Additionally, the DOJ's settlement resolved claims filed by the American Alliance for Equal Rights, a group led by affirmative action opponent Edward Blum, under the U.S. False Claims Act. Blum's group will receive $4.3 million as part of the settlement, with the remaining amount going to the DOJ.