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Shareholder actions challenging DEI programs may gain momentum following Trump’s executive order “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” that impacts affirmative action measures.

U.S. publicly-traded companies assessing their diversity initiatives face potential risks beyond federal probes. Legal experts suggest that shareholder cases could be strengthened by the recent White House decree, which directs federal agencies to pinpoint private-sector entities for civil compliance scrutiny.

Given the new executive order, some shareholders might contend that maintaining any DEI programs exposes a company to unnecessary litigation, as well as reputational and financial risks, which ultimately affects investors.

Here is the full text of President Trump’s Executive Order.

Image by Gerd Altmann from Pixabay

By Published On: January 29, 2025Categories: Employment LawTags: , , , , , , , ,

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ABOUT THE AUTHOR:

Avatar of Casey Erick
Casey Erick is a Shareholder and focuses on Commercial Litigation and Employment Law. He has represented clients in both litigation and transactional matters that span across commercial law, labor and employment, real estate, consumer protection, and general litigation including, but not limited to breach of contract, corporate trade secret theft, tortious interference, defamation, personal injury, fraud, and various other kinds of civil litigation. He has represented high-profile clients as well as defended against high-profile national and global entities in matters related to commercial litigation, defamation, privacy, negligence, the Stored Communications Act, the Texas Harmful Access by Computer Act, Texas identity Theft Enforcement and Protection Act, and the Computer Fraud and Abuse Act. Casey is Board Certified in Civil Trial Law.