Bass, Berry & Sims attorney Denise Barnes discussed how the False Claims Act (FCA) could be used to investigate and pursue civil rights claims related to diversity, equity and inclusion (DEI) under the newly established Civil Rights Fraud Initiative.
Denise told Law360 that while any enforcement actions or lawsuits rooted in the civil rights fraud initiative will take time to materialize, they will largely turn on the question of legal falsity — whether a false statement was made or a false claim was submitted to the government for payment.
That assessment could be complicated, particularly if any alleged violations aren’t clear-cut. While there is jurisprudence from the U.S. Supreme Court, and the U.S. Equal Employment Opportunity Commission has offered some guidance about it, what the current law “might not actually align with what the administration’s view is,” according to Denise.
When speaking about the potential number of cases utilizing the FCA for these types of violations, Denise said “In short, yes, I think that we will see a rise in these cases and some enforcement activity, even if it’s not immediately.”
The full article, “False Claims Act Gives Trump ‘Sledgehammer’ To Battle DEI,” was published on May 21 by Law360 Employment Authority and is available online (subscription required).