WASHINGTON, D.C. — Diversity Lab LLC, a diversity, equity and inclusion consulting firm whose Mansfield Certification program was adopted by hundreds of law firms nationwide, has ceased operations after becoming the subject of a Federal Trade Commission antitrust investigation.
The company informed the FTC that it filed dissolution paperwork with the California Secretary of State on Friday, according to the agency.
The FTC opened a formal inquiry earlier this year into whether agreements tied to Diversity Lab’s Mansfield Certification program violated federal antitrust laws. The investigation focused on employment practices promoted through the certification process and whether participating firms coordinated hiring and promotion standards in a manner that could restrict competition in the legal labor market.
According to the FTC, the Mansfield program encouraged participating firms to consider candidate pools containing at least 30% individuals from specified demographic groups when making certain employment decisions. The agency alleged that more than half of participating firms were enrolled in a higher-tier program, Mansfield Certification Plus, which required firms to certify implementation of those standards in final employment decisions.
Founded in 2016, the Mansfield program expanded to include more than 360 law firms. The FTC said participating firms employed tens of thousands of attorneys.
The agency’s investigation sought information to determine whether agreements associated with the certification program could constitute collusive conduct under Section 1 of the Sherman Act and Section 5 of the FTC Act.
FTC Chairman Andrew N. Ferguson argued that employment decisions should be based on merit and that agreements among competitors involving hiring practices may raise antitrust concerns.
“Colluding with your competitors to set race-based quotas for hiring is not only immoral, but it also may violate the antitrust laws,” Ferguson said. “The FTC will not tolerate agreements rigging the labor markets.”
The closure follows additional scrutiny of the program earlier this year. In January, Ferguson sent warning letters to 42 law firms that participated in the Mansfield program.
The FTC did not indicate whether the investigation remains active following Diversity Lab’s dissolution.
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