The Department of Justice announced on December 29 2025 that it has opened a formal investigation into Verizon Communications Inc. for its diversity, equity and inclusion (DEI) hiring and promotion policies. The probe is being conducted under the False Claims Act, a federal law that allows the DOJ to recover damages when a company misrepresents compliance with anti‑discrimination laws while receiving federal contracts.
Verizon had already ended its DEI programs in May 2025 to secure approval for its $20 billion acquisition of Frontier Communications, after FCC Chairman Brendan Carr criticized the company’s DEI initiatives. The DOJ investigation follows that earlier scrutiny and is part of the Trump administration’s broader crackdown on DEI programs in both federal agencies and private contractors.
The DOJ alleges that Verizon’s DEI programs could be used to justify federal payments while not fully complying with federal anti‑discrimination statutes, potentially constituting fraud under the False Claims Act. If the company is found liable, it could face civil penalties and be required to alter its DEI practices, with significant implications for its federal contracting portfolio.
The probe could affect Verizon’s ability to secure future government contracts, potentially reducing revenue from federal work and raising regulatory risk. Management has emphasized its commitment to equal opportunity and nondiscrimination, but the investigation underscores the challenges of balancing DEI initiatives with strict federal compliance requirements.
Verizon’s Chief Legal Officer Vandana Venkatesh said in a letter to FCC Chairman Carr that the company recognizes that some DEI policies could be associated with discrimination, reaffirming its commitment to equal employment opportunity. The DOJ probe adds a new layer of scrutiny, but Verizon has not yet indicated any changes to its broader workforce strategy beyond the earlier termination of DEI programs.
The announcement has drawn attention from regulators and investors, highlighting the potential impact on Verizon’s future government contracts and overall risk profile. No immediate market reaction data is available at this time.
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