Compliance Stuff

On Friday, April 10, 2026, the Department of Justice (“DOJ”) announced a $17 million False Claims Act (“FCA”) settlement with International Business Machines (“IBM”), based on the company’s alleged violations of federal anti-discrimination laws. The settlement is the first under the DOJ’s  Civil Rights Fraud Initiative,  created last May with the objective of investigating and prosecuting “illegal DEI” practices, primarily through an FCA lens. Coupled with a new  Executive Order —issued on March 26—that imposes contract prohibitions on “racially discriminatory DEI activities” in federal government contracts and subcontracts, the IBM settlement signals an escalation in the government’s focus on DEI programs and employment policies. The DOJ Press Release and Settlement Agreement   The Alleged “Covered Conduct” Identifies Specific Problematic Practices.  DOJ alleged that IBM improperly made employment decisions based on protected characteristics t hrough specific ...

On September 19, the U.S. Department of Justice (DOJ) announced a  False Claims Act  (FCA) settlement with a New Jersey shipyard that allegedly hired subcontractors employing undocumented workers. The recent settlement highlights an ongoing shift in the federal government’s strategy to enforce immigration laws aimed at businesses with federal contracts. It also underscores the Trump administration’s stated focus on enforcing immigration laws through various legal avenues, including criminal, civil, and administrative investigations and enforcement actions against employers. Businesses should expect and prepare for heightened scrutiny regarding their hiring and employment practices under this administration. Increased FCA Risks for Employers The FCA prohibits individuals and businesses from knowingly submitting false or fraudulent claims for payment to the federal government under 18 U.S.C. § 287 .  FCA violations  can result in civil penalties, including significan...

The Trump administration has decisively shifted its approach to enforcing employment discrimination laws, leaving employers grappling for clarity and stability to inform their efforts to prevent and manage legal risks stemming from harassment and discrimination . Workforce analytics, accompanied by privileged legal advice tethered to risk tolerance, can assist employers to identify and address potential workplace discrimination issues minimizing legal risk amid the administration’s shifting enforcement priorities. Quick Hits The Trump administration has sought to end both f ederal enforcement of antidiscrimination laws based on disparate impact theories and to eliminate employer DEI programs. Even with these shifting priorities, it remains critically important for employers to collect and study applicant and employee demographic data to maintain compliance with equal opportunity and antidiscrimination laws, as well as to be prepared for scrutiny under the Trump administration’s shifti...

Welcome to the Summer 2025 issue of “FCA Enforcement & Compliance Digest,” our quarterly newsletter in which we compile essential updates on False Claims Act (FCA) enforcement trends, litigation, agency guidance, and compliance tips. We bring you the most recent and significant insights in an accessible format, concluding with our main takeaways — aka “And the Fox Says…” — on what you need to know.   In this Summer 2025 edition, we cover: Enforcement Trends: DOJ Revisions to White-Collar Crime Enforcement Priorities and Policies Enforcement Trends: Trump Administration Reinforces Illegal DEI Executive Orders With Civil Rights Fraud Initiative Litigation Developments: Insurers Under Scrutiny- Kickbacks, Discrimination, and Medicare Advantage Plans Compliance Corner: Speaker Programs for Health Care Providers- Enforcement Trends and Compliance Lessons ICYMI:  DOJ Plans to Use the FCA to Attack DEI Initiatives 1. Enforcement Trends DOJ Revisions to White-Collar Crime Enforcem...