Deloitte to pay $21.5 million to settle US DOJ probe over DEI practices
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Deloitte will pay $21.5 million to settle a U.S. Department of Justice probe into its diversity, equity and inclusion practices. The settlement resolves claims under the False Claims Act and includes a $4.3 million payment to a whistleblower group. Deloitte denies discriminatory conduct and said the agreement is not an admission of liability.
Key Facts
- Deloitte will pay $21.5 million to settle the DOJ probe over its DEI practices.
- The settlement includes a $4.3 million payment to the American Alliance for Equal Rights, a group founded by Edward Blum.
- The DOJ alleged that Deloitte's Partners, Principals and Managing Directors were evaluated in part on contributions to workforce composition goals.
- Deloitte denies engaging in discriminatory conduct and said the settlement is not an admission of liability.
Settlement Terms
Deloitte will pay $21.5 million to resolve the DOJ's Civil Rights Fraud Initiative probe into its DEI practices. The agreement also resolves claims filed by the American Alliance for Equal Rights under the False Claims Act. The whistleblower group, founded by affirmative action opponent Edward Blum, will receive $4.3 million. Deloitte said it was pleased to resolve the matter to avoid the cost and distraction of protracted litigation.
DOJ Allegations
The DOJ alleged that Deloitte business units received monthly summaries tracking demographic goals. The department claimed that Deloitte's Partners, Principals and Managing Directors were evaluated in part on their contributions to workforce composition goals. The DOJ said such DEI goals aimed at improving representation of Black and Hispanic communities impacted promotion decisions. Deloitte denies it engaged in discriminatory conduct, and the settlement agreement states it does not amount to an admission of liability.
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Deloitte to pay $21.5 million to settle US DOJ probe over DEI practices
