The Justice Department and the Equal Employment Opportunity Commission alleged that managers were pressured to remove nonminority employees from a top-tier bonus program to resolve race-related statistical flags. To avoid protracted litigation, the defense contractor agreed to the settlement while maintaining that it committed no wrongdoing. Of the total funds, $22 million will go directly to the U.S. government, while more than 1,000 impacted workers will share $7.5 million. The matter originated from a False Claims Act lawsuit filed by former vice president Tim Booher, who is slated to receive $4.4 million.
Key points
The Trump administration is increasingly utilizing the 1863 False Claims Act to target co…: The Trump administration is increasingly utilizing the 1863 False Claims Act to target corporate diversity, equity, and inclusion programs.
Corporate leadership denied all liability and stated the settlement was finalized to prev…: Corporate leadership denied all liability and stated the settlement was finalized to prevent prolonged litigation and maintain focus on national defense.
Civil rights organizations have challenged the administration's aggressive enforcement dr…: Civil rights organizations have challenged the administration's aggressive enforcement drive, asserting that it undermines protections for historically marginalized groups.
Sources checked by our analysis pipeline: 1
New York: Defense contractor Lockheed Martin has agreed to pay $29.5 million to settle claims by President Donald Trump's administration that it discriminated against white workers through its efforts to promote diversity and equity in an internal bonus program.
Lockheed Martin will pay $22 million to the U.S. government to resolve claims that it failed to comply with anti-discrimination requirements in its federal contracts, according to the settlement announced late Tuesday by the Justice Department and the Equal Employment Opportunity Commission.
In addition, Lockheed Martin will pay $7.5 million to more than 1,000 affected employees as part of a settlement with the EEOC, which had been investigating the company for violating Title VII of the 1964 Civil Rights Act, which prohibits employment discrimination based on race.
In a statement, Lockheed Martin denied the government's allegations but said it "agreed to resolve this matter with the Department of Justice and the Equal Employment Opportunity Commission to avoid the distraction and expense of prolonged litigation."
"We did not admit liability, determining it would be best for all involved to put these matters…
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