Accenture has settled with the U.S. Department of Justice.

According to a press release, Accenture Federal Services (AFS), Accenture plc, and Accenture LLP (collectively, Accenture) were accused of violating the False Claims Act since 2017.

The allegations state that Accenture did not meet anti-discrimination requirements in federal contracts and that employees and applicants for employment were discriminated against based on race or sex.

More specifically, the Justice Department maintains that Accenture Federal Services provided business leaders with monthly summaries marked green, yellow, or red to guide progress assessments.

According to the Justice Department, these summaries informed hiring practices based on race and sex. Those factors also applied to promotions — with candidates placed in another “pipeline” to advance the company’s diversity goals, the Justice Department claims. The Justice Department also cited Amplify to Elevate, which is a program that provided mentorship and networking opportunities to improve employees’ career success. The program was allegedly based on race and sex.

Settlement Details

Accenture maintains it did not engage in discrimination, but has agreed to settle the allegations for $25 million, according to the press release.

The Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of Illinois were involved in resolving the matter, the release also states.

“Opportunity and promotion in the workplace must be earned through merit,” said Associate Attorney General Stanley Woodward in a press statement. “Today’s resolution makes unmistakably clear that the department will continue to aggressively pursue unconstitutional discriminatory employment practices.”

Per the press release, Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division also commented:

“Federal contractors have a straightforward obligation: make employment decisions without regard to race or sex. A company cannot take taxpayer dollars, certify that it is following that simple principle, and then use race or sex as a factor in deciding who gets an opportunity.”