By Karim Hammam
Lockheed Martin has agreed to a $29.5 million settlement with federal authorities over allegations that its diversity and equity initiatives discriminated against white workers, the Department of Justice and the Equal Employment Opportunity Commission announced Tuesday.
The defense contractor will pay $22 million to the U.S. government to resolve claims it violated anti-discrimination rules tied to federal contracts, and an additional $7.5 million to more than 1,000 affected employees under a separate EEOC agreement.
Lockheed Martin denied the allegations but said it settled to avoid the distraction and expense of prolonged litigation, emphasizing its focus on national security missions.
False Claims Act Used to Target DEI Programs
The settlement reflects the Trump administration's use of the 1863 False Claims Act to pressure contractors to abandon diversity, equity and inclusion programs. The DOJ has reached similar settlements with IBM, Deloitte and Accenture.
Whistleblower Triggered Investigation
The case originated from a whistleblower action by former Lockheed Martin vice president Tim Booher, who will receive $4.4 million under the False Claims Act. Booher resigned in May 2023 and filed a court complaint in October 2025, stating he could not be complicit in what he called illegal discrimination.
EEOC Commissioner's Role
Booher met with EEOC Commissioner Andrea Lucas in July 2024; Lucas, appointed chair after Trump took office in January 2025, launched a commissioner's charge that prompted the federal inquiry. Lucas has been a vocal opponent of DEI initiatives and has pursued similar actions against other corporations.
Allegations Involve Bonus Program
Federal prosecutors alleged that a 2021 internal bonus initiative for the top 20% of employees included a process that flagged demographic outliers by race and sex. Managers were pressured to adjust nominations to add racial minorities and exclude nonminority employees, according to the government.
Civil rights groups have criticized the administration's enforcement, arguing it undermines long-standing protections against bias in hiring and promotion.
