LOCKHEED MARTIN AGREES TO PAY $29.5M OVER DISCRIMINATION CLAIMS

Lockheed Martin has agreed to pay $29.5 million to settle discrimination allegations and claims it falsely certified civil rights compliance as a federal contractor, the Department of Justice and the Equal Employment Opportunity Commission announced on 3 November 2026. Of the total, $22 million will go to the government under the False Claims Act, covering alleged race- and sex-based employment practices since 2019. A further $7.5 million will be paid to more than 1,000 employees under a separate EEOC agreement. The Justice Department said the claims are "allegations only and there has been no determination of liability."

The EEOC settlement resolves a 2025 Commissioner's Charge filed by chair Andrea Lucas, alleging discrimination against white employees in performance reviews, bonuses and pay. The Justice Department said HR staff added or removed employees by race within a "Compensation Adder" programme, launched in 2021 to give extra annual rises to the top 20% of employees, until statistical "flags" cleared. The False Claims Act payment also resolves a whistleblower lawsuit by Tim Booher, a former Lockheed vice president, who will receive $4.4 million. Lockheed rejected the allegations, saying it settled "to avoid the distraction and expense of prolonged litigation."

The EEOC had examined whether Lockheed breached Title VII of the Civil Rights Act of 1964, barring race-based discrimination. The False Claims Act dates to 1863 and lets the government recover money from contractors over false claims. The settlement forms part of a wider pattern of actions against diversity, equity and inclusion programmes at federal contractors under the Trump administration. Lockheed added that it did not admit liability and wanted to "remain focused on our critical national security mission."