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 March 2, 1863 President Abraham Lincoln signed the  False Claims Act  (FCA) into law. Over the past century and a half, the law, which offers whistleblower awards under its  qui tam  provisions, has emerged as America’s number one anti-fraud law. Now turning 162, the False Claims Act faces an immense threat, as a district court ruled in September that its  qui tam  provisions are unconstitutional. At the same time, however, government officials are promising “aggressive” enforcement of the law and to defend the constitutionality of its  qui tam  provisions. America’s Number One Anti-Fraud Law Faced with government contracting fraud undermining the nation’s war effort during the Civil War, Congress looked for a new law to fight back against fraudsters. The FCA’s  qui tam  provisions, which allow individuals to file suit alleging fraud on behalf of the United States and receive a portion of any recoveries from a successful case, provid...