US Justice Department Using Fraud Law to Target Companies on DEI, WSJ Reports

The Trump administration has launched investigations into the use of diversity initiatives in hiring and promotion at major U.S. companies, the Wall Street Journal reported.

Google and Verizon are among a list of companies that have received Justice Department demands for documents and information about their workplace programs, the report said, citing people familiar with the investigations.

Reuters could not immediately verify the report. Verizon, Google, and the Justice Department did not immediately respond to requests for comments.

The probes are being conducted under the False Claims Act, the report said, adding that companies under scrutiny include sectors like automotive, pharmaceuticals, defense, and utilities, and some have met in person with Justice Department officials.

The False Claims Act is a federal civil law that allows the government to recover funds lost due to fraud.

President Donald Trump moved quickly after taking office in January to eradicate federal DEI programs and discourage them in the private sector and education, including by directing the firing of diversity officers at federal agencies and pulling grant funding for a wide range of programs.

(Reporting by Mihika Sharma in Bengaluru; Editing by Ronojoy Mazumdar and Rashmi Aich)

Topics USA Fraud