Bass, Berry & Sims attorney Denise Barnes discussed the most recent executive order (EO) issued by President Trump aimed at preventing government contractors from engaging in “racially discriminatory” diversity, equity and inclusion (DEI) activities. If a contractor engages in certain CEI actions, it could make the contractor ineligible for future contracts.
In her comments about the latest EO, Denise discussed the potential for added False Claims Act (FCA) exposure for contractors but noted “the government will continue to face challenges in establishing legal falsity, materiality and causation” with a particular emphasis on materiality based on the 2016 Escobar Supreme Court decision.
“Needless to say, the government faces significant exposure as to whether engaging in DEI activities goes to the ‘very essence of the bargain’ for the contracts at issue,” she added.
The full article, “Trump Issues New DEI Order Aimed At Contractors,” was published by Law360 on March 27 and is available online.