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Google and Verizon being investigated for fraud by the US government

The DOJ believes that federal contractors who pursued DEI policies committed fraud.

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By Anam Hamid

Published: Dec 29, 2025, 10:51 AM

google verizon investigation by doj for fraud

The US Department of Justice (DOJ) has launched a fraud investigation into numerous companies, including Alphabet’s Google and Verizon, for running Diversity, Equity, and Inclusion (DEI) programs while doing work for the government, reports The Wall Street Journal.

Google and Verizon are being investigated under the False Claims Act

The False Claims Act (FCA) mandates that entities that mislead the government by submitting false records, dodging payments, or overcharging must pay triple the government's losses, plus additional fines.

The DOJ, under the Trump administration, asserts that companies that considered diversity when hiring while holding a federal contract committed fraud against the government, putting them on the hook for damages. Officials argue that by pursuing DEI policies, these companies violated their obligations to the government.

The DOJ has reportedly asked Google, Verizon, and many other companies for documents and information about their workplace programs.

The FCA has never previously been used to enforce compliance with such policy objectives.

Google and Verizon have rolled back DEI programs

The government is going after companies that failed to rescind DEI policies following President Trump's executive order, which aimed to end what the administration characterizes as illegal discrimination in favor of merit-based opportunities.

While both Google and Verizon eventually scrapped their DEI policies —Google in early February and Verizon in May — the administration appears to be targeting them because they didn't comply swiftly enough. Trump launched a crackdown on DEI programs on his first day in office, January 20.

Do Google and Verizon deserve to be penalized for not rolling back DEI soon enough?

Yeah, discrimination is illegal.

47.22%

No, they have ended the programs.

18.69%

No, they were complying with the previous administration.

34.1%

1616 Votes

No precedent

Given the unprecedented interpretation of the FCA, the outcome of these investigations remains uncertain. Should the DOJ proceed with a lawsuit, it will have a hard time proving that the government was intentionally defrauded. However, if the DOJ prevails, the financial implications will be huge for the affected companies. The blow will especially be brutal for Verizon, which is already reeling from the effects of three straight quarters of customer losses and is scrambling to stage a turnaround.

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Anam Hamid is a computer scientist turned tech journalist who has a keen interest in the tech world, with a particular focus on smartphones and tablets. She has previously written for Android Headlines and has also been a ghostwriter for several tech and car publications. Anam is not a tech hoarder and believes in using her gadgets for as long as possible. She is concerned about smartphone addiction and its impact on future generations, but she also appreciates the convenience that phones have brought into our lives. Anam is excited about technological advancements like folding screens and under-display sensors, and she often wonders about the future of technology. She values the overall experience of a device more than its individual specs and admires companies that deliver durable, high-quality products. In her free time, Anam enjoys reading, scrolling through Reddit and Instagram, and occasionally refreshing her programming skills through tutorials.

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