Lockheed Martin to pay $29.5 million to resolve discrimination Claims

Under the agreement, Lockheed Martin will pay $22 million to the U.S. government for failing to comply with anti-discrimination requirements in its federal contracts. An additional $7.5 million will be distributed to over 1,000 affected employees as part of the EEOC settlement, addressing violations of Title VII of the 1964 Civil Rights Act.

Lockheed Martin maintains it did not admit liability, stating in a release that the settlement was reached “to avoid the distraction and expense of prolonged litigation.” The company emphasized its focus remains on national security.

The case highlights the Trump administration’s use of the False Claims Act to challenge diversity, equity, and inclusion practices among federal contractors. Similar settlements have been reached with IBM, Deloitte, and Accenture.

The allegations center on the bonus program’s statistical analysis, which flagged nominations based on race and sex. Managers were then allegedly pressured to adjust nominations, sometimes directing them to remove non-minority candidates and add minority candidates.

The settlement includes $4.4 million for Tim Booher, a former Lockheed Martin vice president who filed a whistleblower complaint. Booher resigned in May 2023, citing concerns about the company’s alleged discriminatory practices. He initially detailed his allegations to EEOC Commissioner Andrea Lucas in July 2024.

Lucas, who has been a vocal critic of DEI initiatives, has encouraged white men to report discrimination and has filed similar charges against other companies. “Title VII protects every worker from employment discrimination on the basis of race — and that protection does not yield when discriminatory decisions are framed as diversity initiatives,” Lucas stated.

Booher’s legal team expressed satisfaction with the settlement, noting it avoids further litigation.