Bass, Berry & Sims attorneys Denise Barnes and Scott Gallisdorfer authored an article for Law.com discussing the recent introduction of the Civil Rights Fraud Initiative and its use of the federal False Claims Act (FCA) in the wake of executive orders aimed at “’illegal DEI [diversity, equity and inclusion].’” The use of the FCA presents new challenges for compliance and holds significant weight for federal contractors and grant recipients that have high exposure to liability under the FCA, but there are still questions on how enforcement will follow.
“Although the landscape is undoubtedly continuing to evolve, the government’s failure—or reluctance—to provide additional detail regarding what illegal DEI looks like, may prove fatal for future FCA enforcement,” said Denise and Scott.
“Despite these challenges, however, enforcement and whistleblower risks related to these issues remain high: this is clearly a high priority for the administration, and company insiders may feel strongly about their company’s practices related to these issues, even if those practices are well-founded, reasonable and perfectly legal,” the authors state.
As a response to the potential threats posed by the Civil Rights Fraud Initiative, the attorneys provide a comprehensive guide for organizations to effectively defend themselves in the case of an investigation.
The full article, “DOJ Civil Rights Fraud Initiative Presents New Compliance and Enforcement Risk,” was published by Law.com on June 30 and is available online.