False Claims Act (DEI Violations)
We represent individuals and businesses facing allegations related to Diversity, Equity and Inclusion (DEI) policies that the federal government claims may violate the False Claims Act (FCA). As the government increases its focus on how federal funds are used, some DEI programs may come under legal scrutiny. We help clients understand their rights, respond to investigations, and build strong defenses against these complex accusations.
Understanding False Claims Act Allegations Involving DEI
The False Claims Act (FCA), a federal anti-fraud statute, allows the government to recover funds from entities that knowingly submit false claims for payment or approval to the United States. Under a new initiative launched by the Department of Justice (DOJ), the FCA is now being used to investigate and prosecute universities, federal contractors, and other recipients of federal funds for allegedly violating civil rights laws while certifying compliance.
This initiative specifically targets institutions that implement DEI policies perceived to assign benefits or burdens based on race, ethnicity, or national origin—practices that the federal government asserts may constitute illegal discrimination. Colleges and universities, in particular, are under heightened scrutiny for policies related to antisemitism, campus safety, transgender rights, and athletics. Under DOJ guidance, certifying compliance with civil rights laws while maintaining such programs may be viewed as fraudulent conduct under the FCA.
Examples of Conduct Under Investigation
The DOJ’s Civil Rights Fraud Initiative identifies a broad range of activities that may result in FCA liability when tied to DEI policies. These include:
- Maintaining DEI programs that apply racial or ethnic preferences
- Failing to protect Jewish students from alleged antisemitism
- Allowing transgender individuals to access gender-aligned bathrooms or sports teams
- Using demographic-based criteria in admissions, hiring, or scholarship decisions
- Publicly promoting diversity dashboards while certifying nondiscrimination compliance
- Renaming or altering DEI offices in response to federal scrutiny while continuing the same practices
Universities and other recipients of federal funding are particularly vulnerable, as they must certify compliance with civil rights laws to receive grants and other forms of government support. When the DOJ suspects that an institution has misrepresented its compliance, the government may seek significant penalties—including treble damages.
The FCA also permits private individuals (known as relators or whistleblowers) to file suit on the government’s behalf. These individuals may be current or former employees, students, or other insiders who believe that an institution is fraudulently misrepresenting its DEI compliance. If the case is successful, whistleblowers may receive a percentage of the recovered funds.
Because of this provision, organizations may face exposure not only from government investigations, but also from internal actors incentivized to come forward. The DOJ’s new initiative is co-led by the Civil Division’s Fraud Section and the Civil Rights Division, with all 93 U.S. Attorney’s Offices directed to assign attorneys to pursue such matters. Coordination with agencies such as the Department of Education and the Department of Health and Human Services means that investigations may span multiple areas of compliance.
Allegations under the FCA related to DEI programs are legally and politically complex. At Jayne Law Group, we understand the high stakes involved and the importance of tailoring a defense to your specific circumstances. We represent both institutions and individuals targeted in investigations or lawsuits, and we bring decades of experience navigating federal enforcement priorities.