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Federal Employees as Relators OK'ed

Client Alert | less than 1 min read | 08.07.12

In Little v. Shell Exploration & Production Co., the Fifth Circuit joined the Tenth and Eleventh Circuits in holding that federal employees, like private citizens, can bring whistleblower suits under the False Claims Act--even when those employees are auditors whose job is to investigate fraud. The Sixth and Ninth Circuits have also implicitly held that federal employees are not barred from acting as relators, while the First Circuit has held that at least some federal employees may not be qui tam plaintiffs.

Insights

Client Alert | 3 min read | 04.14.26

DOJ’s False Claims Act Resolution Against IBM Signals Heightened Risk for Federal Contractors with DEI Programs

On Friday, April 10, 2026, the U.S. Department of Justice (DOJ) announced that International Business Machines Corporation (IBM) has agreed to pay just over $17 million to resolve allegations that it violated the False Claims Act (FCA) by failing to comply with federal anti-discrimination requirements incorporated into its federal contracts due to allegedly discriminatory diversity, equity, and inclusion (DEI) employment practices. This resolution marks the first FCA settlement secured by the DOJ under its Civil Rights Fraud Initiative, created in May 2025, and announced by then-Deputy Attorney General Todd Blanche as part of the administration’s coordinated efforts to target allegedly unlawful DEI practices. Per the agreement, the settlement is neither an admission of liability by IBM nor a concession by the United States that its claims are not well founded....