Civil Rights and False Claims Act Risk & Response Team

In response to the U.S. Department of Justice’s Civil Rights Fraud Initiative, which expands the False Claims Act (“FCA”) to cover alleged violations of diversity, equity, and inclusion (“DEI”) policies, AGG has launched a dedicated Civil Rights and False Claims Act Risk & Response Team. This cross-disciplinary team draws from AGG’s deep experience in False Claims Act defense, government investigations, employment law, federal grants and contracts, and compliance audits to help federal funding recipients assess and mitigate risk under the new enforcement initiative.

As of May 2025, the DOJ has made clear that certain race- and gender-based DEI programs may now be treated as actionable “fraud” under the FCA. This novel enforcement theory puts a wide range of federal funding recipients — including universities and other educations institutions, healthcare systems, nonprofits, and contractors — at risk of whistleblower complaints, DOJ scrutiny, and FCA litigation. Importantly, these risks are no longer confined to financial misstatements but extend to alleged noncompliance with civil rights requirements.

Civil Rights Compliance: Emerging Risks for Federal Funding Recipients

Organizations receiving federal funds must now treat DEI-related compliance as a high-stakes legal exposure area. Penalties under the FCA include treble damages, civil penalties, reputational harm, and prolonged litigation. Immediate legal review of internal policies, certifications, and employment practices is essential to manage risk and demonstrate good-faith compliance.

How AGG Supports Clients

Our Civil Rights and False Claims Act Risk Response Team provides strategic guidance across the full lifecycle of risk:

• Internal investigations into DEI and compliance concerns
• Defense of DOJ and whistleblower actions under the FCA
• Compliance audits and updates to employment, DEI, and certification policies and protocols
• Training and legal opinions to support good-faith defenses
• Crisis management and communications strategy

We offer rapid response capability for clients facing urgent inquiries or subpoenas involving these emerging FCA theories. We also work closely with general counsel, compliance officers, and HR leaders to proactively assess and adjust their internal policies, particularly those related to DEI initiatives, employment practices, and federal grant or contract certifications, to minimize exposure and demonstrate compliance.

Trusted Counsel for High-Stakes Government Investigations

Our attorneys bring decades of experience in civil and criminal DOJ matters, including FCA litigation, Qui Tam defense, employment discrimination audits, and regulatory compliance. We understand how these investigations unfold and how to protect your organization’s interests — legally, operationally, and reputationally.