LOCKHEED MARTIN PAYS $29.5M OVER ANTI-WHITE BIAS CLAIMS
Defense contractor Lockheed Martin has agreed to pay $29.5 million after federal officials alleged it discriminated against white workers through an internal diversity program. The Lockheed Martin discrimination settlement, announced by the Justice Department on November 2, 2026, resolves claims that the company violated federal requirements for government contractors by manipulating a merit-based bonus system.
Under the agreement, Lockheed Martin will pay $22 million to the U.S. government to settle False Claims Act allegations. The company will also pay $7.5 million to more than 1,000 affected employees to resolve a related Equal Employment Opportunity Commission investigation.
The Bethesda, Maryland-based company introduced the program in 2021 to offer salary increases and promotions to its top 20 percent of employees. Managers submitted nominations for the rewards, which the company then analyzed to identify statistical outliers based on race and sex.
According to the New York Post, the Justice Department alleged that Lockheed Martin personnel pressured business group leaders to resolve these race-related flags. Managers were allegedly asked to remove nonminority employees from their nomination lists and replace them with racial minorities.
The investigation stems from a whistleblower complaint filed by Tim Booher, a former vice president at Lockheed Martin. Booher resigned from the company in May 2023 after stating he felt he could no longer participate in the alleged illegal discrimination. He filed his federal complaint in October 2025.
As part of the resolution, Booher will receive $4.4 million under the whistleblower provisions of the False Claims Act, according to the Justice Department.
Booher met with EEOC Commissioner Andrea Lucas in July 2024 to detail his allegations. Lucas subsequently filed a commissioner’s charge against Lockheed Martin, which officially triggered the agency’s investigation into the defense contractor. The case is part of a broader effort by the Trump administration to use the False Claims Act to pressure federal contractors into dropping diversity, equity and inclusion initiatives.
Lockheed Martin denied the government’s allegations and did not admit liability in the settlement. In a public statement, the company said it agreed to resolve the matter to avoid the distraction and expense of prolonged litigation.
“We did not admit liability, determining it would be best for all involved to put these matters behind us so we can remain focused on our critical national security mission,” the company said.
