Deloitte To Pay USD 21.5 Million To Settle US Government Probe Over DEI Practices

Deloitte will pay USD 21.5 million to settle a US Department of Justice (DOJ) investigation into its diversity, equity and inclusion (DEI) practices, Reuters reported.

The settlement resolves claims under the DOJ’s Civil Rights Fraud Initiative, which was established to examine DEI policies using federal anti-fraud laws. The department alleged that Deloitte tracked workforce demographic targets and that some senior executives were assessed partly on their contribution to meeting workforce composition goals. The DOJ also alleged that DEI targets affecting the representation of Black and Hispanic employees influenced promotion decisions.

Deloitte denied engaging in discriminatory conduct. The settlement does not constitute an admission of liability by the accounting firm, which said it agreed to the payment to avoid the costs and disruption associated with prolonged litigation.

The settlement also resolves claims brought by the American Alliance for Equal Rights under the US False Claims Act.