In August and September 2026, the U.S. Department of Justice (DOJ) announced two new settlements with Deloitte and Accenture, respectively, to resolve False Claims Act (FCA) claims related to their diversity, equity, and inclusion (DEI) employment practices. Following IBM’s settlement involving similar allegations, on which we previously commented, these three settlements account for over $63 million and are increasingly clarifying the employment practices that DOJ views as violative of the FCA.
The Deloitte and Accenture resolutions show DOJ testing a straightforward but consequential theory: a federal contractor that certifies compliance with equal opportunity requirements, while allegedly considering race or sex in employment decisions, may in fact have submitted false claims or false statements material to payment. The settlements also show DOJ looking beyond hiring decisions, expanding its aperture to promotion pipelines, staffing assignments, leadership-development opportunities, and incentive structures. For general counsel and compliance leaders, the practical takeaway is to treat workforce programs, contract certifications, and cost-allocation practices as one integrated compliance risk.
Allegations Against Deloitte and Accenture
In August 2026, DOJ announced that Deloitte LLP and four affiliated entities agreed to pay $21.5 million to resolve FCA allegations based on false-certification theories tied to federal contractor anti-discrimination obligations. DOJ alleged that Deloitte knowingly submitted false claims and false statements by certifying compliance with Title VII as incorporated into federal contracts and FAR 52.222-26, while allegedly allocating costs related to the challenged practices to federal contracts and seeking federal payment or reimbursement. Specifically, DOJ alleged that Deloitte used race- and sex-based workforce composition goals in hiring, promotion, and staffing.
Shortly thereafter, in September 2026, DOJ announced a $25 million payment by Accenture Federal Services, Accenture plc, and Accenture LLP to resolve FCA allegations for failure to comply with anti-discrimination requirements in federal contracts while discriminating against employees and applicants because of race or sex. The settlement agreement states that Accenture Federal Services was required to comply with Title VII as incorporated into its federal contracts and FAR 52.222-26, and that it certified compliance while allegedly maintaining practices that treated employees or applicants differently based on race or sex. DOJ specifically alleged that Accenture used non-public workforce composition goals, color-coded demographic reports, separate discussions and pipelines for promotion candidates who advanced demographic goals, and a program that allegedly reserved participation based on race.
Federal Trends Point to Increased Scrutiny for Civil Rights Fraud Enforcement
These settlements follow DOJ’s May 2025 launch of the Civil Rights Fraud Initiative, a task force positioned to use the FCA to investigate and pursue federal funding recipients for civil rights law violations. DOJ has also repeatedly encouraged whistleblowers (here and here, among others) to file qui tam actions, marking the FCA as a strong statutory guide that authorizes civil penalties plus treble damages.¹ Moreover, April 2026 saw DOJ’s announcement of the National Fraud Enforcement Division, which has been tasked with investigating and prosecuting theft or fraudulent misuse of taxpayer dollars through coordinated, data-driven, cross-agency enforcement. The Division will set national enforcement priorities and propose reforms to close fraud vulnerabilities.
What Employers Need to Know
- Understand that certification itself creates risk. Federal contractors should audit prior contractual certifications tied to federal civil rights laws or executive orders, and carefully review current certifications. Under the FCA, it is the certification itself that creates the false claim, independent of whether the government can show a violation of civil rights laws. Employers should review policies concerning hiring, promotion, and termination to ensure that they are consistent with certifications.
- The risk is not limited to DOJ; employers may face state law exposure. In addition to the FCA, each state employs a false claims corollary to the federal law. For instance, in addition to payments made to the federal government, the Attorneys General of Florida and Indiana each announced payments of $1.2 million, under settlements with their respective states for similar allegations. Audits and risk assessments should not be limited to federal contracts and must include representations and certifications made under state contracting programs.
- The period of recovery dates back before 2025. DOJ is investigating actions and practices far earlier than the White House’s January 2025 announcement concerning its belief that DEI efforts violate federal law. While many employers took the step of conducting self-audits of DEI or affirmative action practices and policies after Executive Order 14173, and modified or discontinued prior programs, employers are still at risk from things that took place well before these changes began.
- Evaluate your risk today. Contractors should conduct privileged reviews of DEI programs or other initiatives that use race, sex, ethnicity, or other protected characteristics in hiring, promotion, succession planning, staffing, mentorship, sponsorship, leadership development, training, or educational access. Any evaluation should consider both written policies and how the programs operate in practice, as DOJ appears focused on internal governance as well as the effects these types of programs have on decision-making. Contractors should also map each federal and state contract, subcontract, certification, and cost practice that touches employment programs. The Deloitte and Accenture resolutions notably highlight that DOJ alleged not only false compliance certifications, but also allocation of costs associated with challenged employment practices to federal contracts and requests for federal reimbursement.
FCA risk for employers and contractors remains high, and we expect that DOJ will continue its fraud enforcement priorities through the Civil Rights Fraud Initiative and National Fraud Enforcement Division. If your business has questions about FCA exposure, pending investigation or litigation, or how to reduce FCA risk, we encourage you to reach out to any member of the Broadfield U.S. team.
¹ The Relator in each action collected over $4 million.
