00:00It's Benzinga, bringing Wall Street to Main Street.
00:03The Trump administration has launched investigations into diversity initiatives
00:06at major U.S. companies by applying a federal anti-fraud law, according to the Wall Street
00:12Journal. The civil probes are being conducted under the False Claims Act, a law traditionally
00:18used to pursue contractors who overbill the government or charge for work not performed.
00:24The Justice Department argues that companies with federal contracts commit fraud if they
00:28continue considering diversity in hiring, allowing the government to seek recovery of potentially
00:33millions of dollars. The probes were ordered under a May enforcement memo from Deputy Attorney
00:39General Todd Blanche after Trump issued an executive order targeting DEI policies and government
00:44work. Companies receiving document demands include Alphabet's Google and Verizon Communications.
00:51Legal experts said the approach is unusual and could face challenges in court, though potential
00:55penalties include triple damages. For all things money, visit Benzinga.com.
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