Lockheed Martin Pays $29.5 Million to Settle DEI Discrimination Claims

Lockheed Martin Corporation agreed to pay approximately $29.5 million to settle federal allegations that it discriminated against white workers through a diversity, equity, and inclusion initiative. The settlement, announced Tuesday, resolves claims from the U.S. Department of Justice and the Equal Employment Opportunity Commission regarding a 2021 incentive program known as the Compensation Adder.

Federal authorities alleged the company pressured managers to remove non-minority employees from a merit-based salary and promotion list to add racial minorities and meet demographic goals. The settlement includes $22 million paid to the U.S. government under the False Claims Act for falsely certifying compliance with anti-discrimination laws to secure federal contracts, and $7.5 million to compensate more than 1,000 affected employees.

The case stemmed from a whistleblower lawsuit filed by Tim Booher, a former vice president at the company, who will receive $4.4 million. Lockheed Martin denied the allegations and did not admit liability, stating it settled to avoid the expense of prolonged litigation. As part of the resolution, the company agreed to adhere to merit-based hiring and promotion practices.

This action is part of a broader effort by the Donald Trump administration to use the False Claims Act to pressure federal contractors to abandon DEI practices, following similar settlements with firms such as IBM, Accenture, and Deloitte.